German Devt Bank Invests €31m Capital in InfraCredit
Infrastructure Credit Guarantee Company Limited (InfraCredit) has sealed a deal with KfW Development Bank (KfW) for a €31 million subordinated capital investment in its operation.
The agreement on the capital raise was signed by Managing Director/Chief Executive Officer of InfraCredit, Mr. Chinua Azubike, and First Vice President, West Africa & Madagascar of KfW, Michael Wehinger in Lagos.
InfraCredit is a specialised infrastructure credit enhancement facility established by the Nigeria Sovereign Investment Authority (NSIA) in collaboration with GuarantCo (a member of the Private Infrastructure Development Group (PIDG), to provide guarantees that enhance the credit quality of local currency debt instruments issued to finance eligible infrastructure projects in Nigeria.
KfW, the largest development bank in Europe and a public law institution existing under the laws of the Federal Republic of Germany with its headquarters in Frankfurt, and InfraCredit have agreed to pursue the common goal to enhance infrastructure investments in Nigeria by supporting private infrastructure enterprises.
In pursuance of this joint objective, KfW is investing a 10year €31 million subordinated unsecured capital in order to strengthen InfraCredit’s guarantee capacity, enable InfraCredit achieve its targeted capitalisation andbolster its balance sheet. The investment is accompanied by a technical assistance grant to support InfraCredit’s market development and capacity building programme.