The African Development Bank said it has approved a $15 million investment package to Infrastructure Credit Guarantee Company (InfraCredit). The loan will be used to support infrastructure financing through the domestic debt capital markets in Nigeria.
The loan, which comprises of a subordinated loan of $10 million and a risk sharing facility of up to $5 million, will promote local currency infrastructure financing and further development of the domestic capital market.
InfraCredit is a specialised infrastructure credit guarantee company, established to enhance local currency debt instruments, mainly bonds, to finance eligible infrastructure projects in Nigeria.
The company was founded by the Nigerian Sovereign Investment Authority (NSIA) in collaboration with GuarantCo (part of the Private Infrastructure Development Group). These initial investors have been joined by the Africa Finance Corporation (AFC) and KfW, the German Development Bank.