InfraCredit Guarantees Nigeria’s First Corporate Infrastructure Bond

InfraCredit has announced its inaugural guaranteed bond transaction, successfully connecting infrastructure as an asset class to the long-term local currency debt capital markets in Nigeria.

InfraCredit is an ‘ AAA’ rated infrastructure credit enhancement facility established by the Nigeria Sovereign Investment Authority in collaboration with GuarantCo (a Private Infrastructure Development Group company),

A statement on Tuesday explained that with InfraCredit’s guarantee, Viathan Group through Viathan Funding Plc, established a special purpose vehicle to raise the debt capital. It noted that Viathan Group successfully accessed the debt capital markets for the first time by “issuing a N10.0bn 16.0 per cent Series 1 Senior Guaranteed Fixed Rate Bond Due 2027 (the “Viathan Bonds”) backed by the irrevocable and unconditional guarantee of InfraCredit and accorded ‘AAA’ long term national scale rating by GCR and Agusto & Co.”

According to the statement, the Viathan bonds would be the first corporate infrastructure bonds issued in the Nigerian debt capital markets with a tenor of 10 years, extending the yield curve for corporate debt issuances.

“By leveraging on InfraCredit’s financial strength and high credit ratings, the Viathan Bonds was subscribed by 16 institutional investors comprising at least 12 pension funds and two insurance companies, committing a total of N10.5 billion out of the total issue size of N10 billion, translating to a 105 per cent subscription,” it added.