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.