NSIA, GuarantCo set up $200 million infracredit firm

Uche Orji | Chief Executive Officer of the Nigerian Sovereign Investment Authority (NSIA)

The Nigeria Sovereign Investment Authority (NSIA) and GuarantCo have announced the establishment of an infrastructure credit enhancement facility in Nigeria (InfraCredit) conceptualized in 2014.

The US$200 million InfraCredit will provide guarantees to enhance the credit quality of local currency debt instruments (mainly in the form of corporate/infrastructure bonds) issued by eligible entities (corporates, state governments) to finance credit worthy infrastructure projects in Nigeria, Intended as a sustainable framework for stimulating infrastructure investments in key sectors of the Nigerian economy, its successful operation will foster the development of the Nigerian debt capital markets.

Incorporated as a private limited liability company based in Lagos, Nigeria, InfraCredit will run on a commercial basis guided by international best practices and local governance standards. Its Board of Directors, will be comprised of representatives of NSIA, GuarantCo, institutional investors and independent members.

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