InfraCredit, a local financing firm, has fully gotten a $10 million facility under the Subordinated Loan Agreement for 10 years from the African Development Bank (AfDB), raising the firm’s capital base to $146 million (N58.5 billion).
A statement by AfDB’s Director of Financial Sector Development, Stefan Nalletamby, said “The bank’s support will strengthen the capital base of InfraCredit, underpinning the expansion of the company’s core business of guaranteeing bonds issued to fund infrastructure projects.”
The ‘AAA’ rated specialised infrastructure credit firm finances critical infrastructure projects including energy, agriculture, water, health and education, through local capital markets.
The chief executive officer of InfraCredit, Chinua Azubike, said, “With the admission of AfDB to our capital structure, we are confident of our continuing ability to deepen market penetration and support access to long-term domestic credit for the growing pipeline of infrastructure projects that will create jobs and support local economic growth,” he said.
The firm believes that the investment by AfDB demonstrates the strong investor confidence in the fundamentals of InfraCredit’s business and would promote the deepening of the local debt capital market.
