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AIICO acquires 5% stake in InfraCredit

AIICO Insurance Plc has been admitted as the second private domestic institutional investor in InfraCredit, following Leadway Assurance Plc’s initial involvement

AIICO

AIICO Insurance Plc has been admitted as the second private domestic institutional investor in InfraCredit, following Leadway Assurance Plc’s initial involvement.

According to the press release announcing the move, AIICO’s investment represents 5% of the institution’s share capital.

This strategic move propelled InfraCredit’s paid-in capital base to $175.14 million (N148.55 billion), consequently elevating the institution’s credit guarantee capacity to an impressive $875.7 million (N742.77 billion).

What they are saying

Commenting on the deal, AIICO Insurance’s CEO, Babatunde Fajemirokun noted that over the years, AIICO Insurance had invested in InfraCredit guaranteed bonds, as well as other financing arrangements promoted by the institution.

He said

Chairman of InfraCredit’s Board of Directors, Sanjeev Gupta, speaking on the deal, noted that the move was part of the drive to increase private sector involvement in InfraCredit’s ownership structure.

He noted,

Backstory

InfraCredit is an AAA-rated specialized infrastructure credit guarantee institution.

READ ALSO: InfraCredit has guaranteed N3 billion initial debt financing under a N12.5 billion debt programme for Modern Shelter Systems and Services Limited (Modern Shelter).

The institution draws support from key financial entities like the Nigeria Sovereign Investment Authority, GuarantCo,

InfraCo Africa (Private Infrastructure Development Group companies), KfW Development Bank, Africa Finance Corporation, and the African Development Bank.

Essentially, InfraCredit mobilizes long-term funding for infrastructure projects within Nigeria. By assuming the role of a catalyst, the institution entices local currency credit from varied sources such as pension funds, insurance firms, and other long-term investors for infrastructure projects.

InfraCredit currently guarantees credit for infrastructure projects across Nigeria, ranging from:

Speaking on the admittance of AIICO Insurance as an investor, Chinua Azubike, the CEO of InfraCredit noted,

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