Infrastructure Credit Guarantee Company Limited

Infrastructure Credit Guarantee Company Limited, trading as InfraCredit, is a Nigerian credit enhancement and financial guarantee company. It provides local currency guarantees designed to improve the credit quality of debt instruments issued to finance creditworthy infrastructure assets in Nigeria that meet its eligibility criteria. The company was established to address a structural gap in the Nigerian market: the long-term capital required by infrastructure entities and projects is not readily available from the domestic banking market, which tends to lend short. InfraCredit's core proposition is to act as a catalyst that attracts investment interest from pension funds, insurance firms and other long-term investors into infrastructure debt. By guaranteeing bonds and other debt instruments, it helps deepen the Nigerian debt capital markets and enables first-time issuers to access capital markets. Its mission is to unlock the potential for long-term local currency infrastructure finance in Nigeria, and its vision is to be the most trusted partner in attracting long-term capital into infrastructure finance. InfraCredit offers a family of guarantee products. These include a financial guarantee that enhances the credit quality of local currency debt instruments, a Contingent Refinancing Guarantee aimed at supporting greenfield infrastructure projects, and an Annuity PPP Guarantee product that supports eligible revenue-generating infrastructure projects. The company has also been involved in climate and off-grid energy finance through the Climate Finance Blending Facility, a catalytic first-loss multi-donor facility seeded with £10 million of concessional funding by the UK Foreign, Commonwealth & Development Office (FCDO) to co-finance off-grid energy investments alongside InfraCredit's local currency guarantees in Nigeria. InfraCredit's guarantee activity has supported landmark transactions in the Nigerian market. It supported North South Power's issuance of the first 15-year corporate green infrastructure bond in Nigeria to finance hydro power capacity expansion. It supported Viathan Group's issuance of the first 10-year corporate infrastructure bond in the Nigerian debt capital markets to expand installed energy capacity and construct a compressed natural gas plant. It supported Transport Services Limited's issuance of the first 10-year infrastructure bond in the transportation and logistics sector. It also enabled Lagos Free Zone Company to access the longest tenor financing in the Nigerian corporate bond market, extending the yield curve for corporate debt to a record 20 years. InfraCredit operates as a private company and is not listed on a stock exchange. Its guarantee portfolio spans power, transport and logistics, industrial zones and off-grid energy, with projects located across Nigeria, including Shiroro Hydroelectric Power Plant in Niger State and Island Power Generation Company in Lekki, Lagos. The company positions itself as a bridge between infrastructure sponsors and domestic institutional investors, using guarantees to mobilize domestic capital, particularly from pension funds, into long-dated infrastructure debt.

Infrastructure Credit Guarantee Company Limited, known as InfraCredit, was created to solve a specific financing problem in Nigeria: infrastructure projects need long-term capital, but the domestic banking market does not provide it on the tenors required for such assets to be commercially successful. The company's answer was to provide local currency guarantees that enhance the credit quality of debt instruments issued to finance creditworthy infrastructure assets in Nigeria that conform to its eligibility criteria. The logic of the model is that guarantees act as a catalyst to attract investment interest from pension funds, insurance firms and other long-term investors, thereby deepening the Nigerian debt capital markets. InfraCredit's stated mission is to successfully unlock the potential for long-term local currency infrastructure finance in Nigeria, creating value for stakeholders, and its vision is to be a catalyst and the most trusted partner in attracting long-term capital into infrastructure finance. Its values are expressed as integrity, passion, innovation, impact and collaboration. Over time InfraCredit has built a portfolio of guarantee products. Its financial guarantee enhances the credit quality of local currency debt instruments issued to finance infrastructure. Its Contingent Refinancing Guarantee product seeks to support greenfield infrastructure projects that conform with its criteria. Its Annuity PPP Guarantee product was developed to support eligible revenue-generating infrastructure projects. Together these products address different stages and risk profiles of infrastructure financing. InfraCredit has also extended its model into climate and off-grid energy finance. The Climate Finance Blending Facility is a catalytic first-loss multi-donor facility seeded with £10 million of concessional funding by the UK Foreign, Commonwealth & Development Office (FCDO) to co-finance off-grid energy investments alongside InfraCredit's local currency guarantees in Nigeria. The associated programme operates in 32 states across the six geo-political zones of Nigeria. The company's guarantee activity has supported a series of firsts in the Nigerian market. It supported North South Power's issuance of the first 15-year corporate green infrastructure bond in Nigeria to finance hydro power capacity expansion. It supported Viathan Group's issuance of the first 10-year corporate infrastructure bond in the Nigerian debt capital markets to expand installed energy capacity and construct a compressed natural gas plant. It supported Transport Services Limited's issuance of the first 10-year infrastructure bond in the transportation and logistics sector. It enabled Lagos Free Zone Company to access the longest tenor financing in the Nigerian corporate bond market, extending the yield curve for corporate debt to a record 20 years. InfraCredit describes itself as a capital provider and maintains governance structures including a board, management, committees and a people function, along with strategy and procurement functions. It reports metrics such as total capital mobilized, domestic capital mobilized from pension funds, contingent refinancing guarantees, first-time issuers accessing capital markets, number of pension fund investors, and infrastructure projects reaching financial close. It operates as a private company and is not listed on a stock exchange.

• Supported North South Power's issuance of the first 15-year corporate green infrastructure bond in Nigeria to finance hydro power capacity expansion.

• Supported Viathan Group's issuance of the first 10-year corporate infrastructure bond in Nigerian debt capital markets to expand energy capacity and construct a compressed natural gas plant.

• Supported Transport Services Limited's issuance of the first 10-year infrastructure bond in the transportation and logistics sector.

• Enabled Lagos Free Zone Company to access the longest tenor financing in the Nigerian corporate bond market, extending the corporate debt yield curve to a record 20 years.

• Climate Finance Blending Facility seeded with £10 million concessional funding by the UK FCDO to co-finance off-grid energy investments alongside InfraCredit's local currency guarantees.

A catalyst and trusted partner unlocking long-term local currency infrastructure finance in Nigeria by attracting pension funds, insurers and other long-term investors.

• Financial Guarantee

  Enhances the credit quality of local currency debt instruments issued to finance infrastructure.

• Contingent Refinancing Guarantee

  Seeks to support greenfield infrastructure projects that conform with InfraCredit's criteria.

• Annuity PPP Guarantee

  Supports eligible revenue-generating infrastructure projects.

• Unconfirmed

  Reported2020.09.17

  InfraCredit completes drawdown of AfDB loan facility[6]InfraCredit完成非洲开发银行贷款提款punchng.com

  InfraCredit said it completed the drawdown of a $10 million subordinated unsecured 10-year facility under its loan agreement with the African Development Bank. The drawdown increased InfraCredit’s capital base to $146 million (N58.5 billion), as stated in the article.

• Unconfirmed

  InfraCredit appoints an independent non-executive director[7]InfraCredit任命独立非执行董事thisdaylive.com

  InfraCredit announced the appointment of Solomon Adegbie-Quaynor as an independent non-executive director and named him to the Board’s Credit and New Business and Risk and Capital Committees.

Read more

1. 1Infracredit : Securing Infrastructure Finance - InfraCreditinfracredit.ng
2. 2About us - InfraCreditinfracredit.ng
3. 3Our Products Archive - InfraCreditinfracredit.ng
4. 4Providing value added logistics and distribution services - InfraCreditinfracredit.ng
5. 5Wikidata Q132472528wikidata.org
6. 6InfraCredit完成非洲开发银行贷款提款punchng.com
7. 7InfraCredit任命独立非执行董事thisdaylive.com