AIICO Insurance Plc has been admitted as the second private domestic institutional investor in InfraCredit following Leadway Assurance Plc’s initial involvement.
The Times revealed that AIICO’s investment equals 5% of the institution’s share capital, according to the press release announcing the move.
This strategic move increased InfraCredit’s paid-in capital base to $175.14 million (N148.55 billion), resulting in an exceptional $875.7 million (N742.77 billion) credit guarantee capacity.
AIICO Insurance’s CEO, Babatunde Fajemirokun, commented on the transaction, noting that the company had previously invested in InfraCredit guaranteed bonds as well as other financing arrangements supported by the organization.
“Over the last two years, AIICO Insurance has invested in InfraCredit guaranteed bonds and participated in novel financing arrangements promoted by the company to bring infrastructure investment to areas that have been significantly underserved,” he stated.
The Chairman of InfraCredit’s Board of Directors, Sanjeev Gupta, said in a statement about the transaction that the move was part of an effort to boost private sector involvement in InfraCredit’s ownership structure.
He went on to say, “This investment marks another significant turning point and a significant milestone for InfraCredit, as we aim to increase private sector involvement in the ownership structure.”
InfraCredit is a specialized infrastructure credit guarantee institution with an AAA rating.
The institution draws support from key financial entities like the Nigeria Sovereign Investment Authority, GuarantCo, InfraCo Africa (Private Infrastructure Development Group firms), KfW Development Bank, Africa Finance Corporation, and the African Development Bank.
InfraCredit essentially raises long-term investment for infrastructure projects in Nigeria. By acting as a catalyst, the institution attracts local currency loans from a variety of sources such as pension funds, insurance firms, and other long-term investors for infrastructure projects.
The Chairman of InfraCredit’s Board of Directors, Sanjeev Gupta, said in a statement about the transaction that the move was part of an effort to boost private sector involvement in InfraCredit’s ownership structure.
CEO of InfraCredit, Chinua Azubike, commented on AIICO Insurance’s admission as an investor saying, “AIICO’s equity investment further strengthens our core capital base and expands our guarantee capacity as we continue to act as a catalyst to attract domestic credit from pension funds, insurance firms and other long-term institutional investors into credit-worthy infrastructure projects.”
