InfraCredit’s listing on the NASD OTC Exchange Plc marks a significant milestone in Nigeria’s pursuit of robust infrastructure development. This strategic move, backed by a $6 million investment from the UK government’s MOBILIST program, elevates InfraCredit’s total valuation to $41 million, including $17.7 million in newly raised equity. As Nigeria’s pioneering domestic credit guarantor, InfraCredit plays a crucial role in bridging the nation’s substantial infrastructure gap. The listing not only strengthens InfraCredit’s financial standing but also underscores the potential of public markets to mobilize domestic capital at scale, thereby fostering sustainable infrastructure growth. This collaboration between InfraCredit and the UK government exemplifies the power of international partnerships in driving economic progress and achieving shared development goals.
The listing signifies a transformative phase for InfraCredit, enabling it to tap into the equity capital markets and broaden its investor base. This expanded access to capital, combined with adherence to public market standards, enhances investor confidence and reinforces InfraCredit’s position as a trusted catalyst for sustainable infrastructure finance. By attracting domestic institutional investors, such as pension funds and insurance firms, InfraCredit facilitates their participation in infrastructure projects, channeling local resources towards critical development initiatives. This injection of local capital, coupled with the UK’s commitment to green growth, positions InfraCredit to play a pivotal role in Nigeria’s transition to a more sustainable and resilient infrastructure landscape.
Nigeria faces a formidable infrastructure deficit, requiring an estimated $2.3 trillion in investment between 2021 and 2043. Addressing this challenge requires innovative financial instruments and mechanisms to attract long-term capital, particularly from domestic sources. InfraCredit’s unique approach involves issuing naira-denominated guarantees that mitigate investment risks, thereby enhancing the creditworthiness of infrastructure debt instruments. This strategy not only attracts local investors but also aligns with the broader objective of deepening Nigeria’s domestic debt capital markets. By de-risking infrastructure investments, InfraCredit empowers institutional investors to participate more actively in financing critical projects, contributing to long-term economic growth and stability.
InfraCredit’s track record speaks volumes about its effectiveness in facilitating infrastructure development. With a project pipeline exceeding $500 million, the company has demonstrated its capacity to mobilize capital and support vital infrastructure initiatives. The listing on the NASD, coupled with MOBILIST’s backing, has further bolstered InfraCredit’s capabilities by attracting direct equity investment from two pension funds. This infusion of capital will enable InfraCredit to expand its guarantee issuance, supporting a wider range of infrastructure projects. Furthermore, MOBILIST’s investment will be instrumental in advancing InfraCredit’s green growth strategy, promoting greater investment in renewable energy sources and contributing to a more sustainable future.
InfraCredit’s ambitions extend beyond the NASD listing, with plans to explore a future listing on the Nigerian Exchange (NGX). This potential listing aligns with MOBILIST’s partnership with NGX, which aims to promote greater investment in projects aligned with the United Nations Sustainable Development Goals. This partnership underscores the UK’s ongoing commitment to supporting Nigeria’s capital market development and fostering sustainable economic growth. By leveraging the NGX platform, InfraCredit can further broaden its investor base, access a larger pool of capital, and amplify its impact on Nigeria’s infrastructure landscape. This strategic move will not only enhance InfraCredit’s visibility but also contribute to the overall development of Nigeria’s capital markets.
InfraCredit’s journey, from its establishment in 2017 to its current position as a listed entity, showcases the effectiveness of public-private partnerships in driving development. Founded by GuarantCo, a Private Infrastructure Development Group company, and the Nigerian Sovereign Investment Authority, InfraCredit was established with the specific mandate of deepening domestic debt capital markets and unlocking long-term infrastructure financing in Nigeria. This collaborative effort has yielded significant results, positioning InfraCredit as a key player in Nigeria’s infrastructure development landscape. The NASD listing marks a pivotal moment in InfraCredit’s evolution, paving the way for continued growth and greater impact on Nigeria’s economy.
