April 17, (THEWILL) – The United Kingdom is backing efforts to mobilise more domestic capital for sustainable infrastructure development and Nigeria’s energy transition through catalytic investment.
Through its MOBILIST programme, the UK government is investing NGN9.5 billion ($6 million) in InfraCredit, Nigeria’s first and only domestic credit guarantor, to support the company’s listing on Nigeria’s NASD OTC Exchange Plc (NASD).
The total listing is valued at NGN64 billion ($41 million), with InfraCredit raising NGN27 billion ($17.7 million) in new equity.
Nigeria’s government has estimated that over $2.3 trillion will be needed between 2021 and 2043 to bridge the country’s significant infrastructure gap.
However, the long-term capital required is largely unavailable within the local banking sector. InfraCredit addresses this challenge by issuing Naira-denominated guarantees, mitigating risk for investors and improving the creditworthiness of infrastructure debt instruments.
This model attracts Nigerian institutional investors, such as pension funds and insurance firms, enabling them to finance critical infrastructure projects.
InfraCredit has so far used guarantees to secure an infrastructure project pipeline worth over NGN750 billion ($500 million). With its new listing and MOBILIST’s support, InfraCredit has now attracted direct equity investment from two pension funds, expanding its capacity to issue more guarantees for future projects.
MOBILIST’s investment will also support InfraCredit’s green growth strategy, transitioning its portfolio toward increased investment in renewable energy sources.
Looking ahead, InfraCredit plans to explore a listing on the Nigerian Exchange (NGX). MOBILIST had earlier announced a partnership with NGX to facilitate greater investment towards achieving the United Nations Sustainable Development Goals (SDGs) through listed products—an initiative that forms part of the UK’s continued commitment to capital market development in Nigeria.
Speaking on the development, British Deputy High Commissioner in Lagos, Mr. Jonny Baxter, said, “InfraCredit’s success highlights the power and impact of long-term partnerships.
The UK, through the Foreign, Commonwealth and Development Office (FCDO), is proud to have played a key role in not just the creation of InfraCredit through the Private Infrastructure Development Group (PIDG), but also its continued growth.
This transaction illustrates the potential of public markets to mobilise domestic capital at scale.”
He added, “By listing with the backing of MOBILIST, InfraCredit enables local institutional investors to benefit from the growth opportunities presented by sustainable infrastructure development, while providing capital access to the local firms driving these projects.”
InfraCredit CEO, Mr. Chinua Azubike, described the listing as a milestone moment for the company.
He said, “This marks the beginning of a new chapter for InfraCredit. We are pleased with the confidence reposed in us by our new domestic institutional shareholders alongside the UK Government through MOBILIST. Our transition to a listed public company reflects our ambition to build a deeper, more inclusive domestic capital market that accelerates infrastructure delivery in Nigeria.”
He continued, “By broadening our ownership and adhering to public market standards, InfraCredit aims to strengthen investor confidence as a trusted catalyst for sustainable infrastructure finance as we scale up our operations.”
Established in 2017 by GuarantCo, a Private Infrastructure Development Group (PIDG) company, and the Nigerian Sovereign Investment Authority (NSIA), InfraCredit was created to deepen Nigeria’s domestic debt capital markets and unlock long-term financing for infrastructure.
It was the first of several such initiatives globally, inspiring the establishment of InfraZamin in Pakistan and Dhamana in Kenya. InfraCo Africa, another PIDG company, became an InfraCredit investor in 2020. Since inception, InfraCredit has secured financing partnerships with UK-based entities such as British International Investment (BII) and Financial Sector Deepening Africa (FSDA).
Janefrances Ebere Chibuzor is a Tourism Writer at THEWILL
