The UK government’s MOBILIST programme is investing NGN9.5 billion ($6 million) in InfraCredit, Nigeria’s first and only domestic credit guarantor, to support the company’s listing on Nigeria’s NASD OTC Exchange Plc (NASD).
The United Kingdom is using catalytic investment to help Nigeria mobilise more domestic capital towards sustainable infrastructure development and the country’s energy transition.
The total listing is valued at NGN64 billion ($41 million), with InfraCredit raising NGN27 billion ($17.7 million) in new equity.
The Nigerian government has estimated that over $2.3 trillion in investment will be needed between 2021 and 2043 to close the country’s enormous infrastructure gap. However, the long-term capital required is not available in the local banking market.
InfraCredit addresses this challenge by issuing Naira-denominated guarantees that help mitigate risk for investors and improve the creditworthiness of Nigerian infrastructure debt instruments.
These guarantees attract Nigerian institutional investors—such as pension funds and insurance firms—enabling them to invest in instruments used to finance infrastructure projects.
InfraCredit has used its guarantees to secure an infrastructure project pipeline of over NGN750 billion ($500 million).
However, through its listing on the NASD with MOBILIST’s backing, InfraCredit has now attracted direct equity investment from two pension funds, which will enable it to expand its capacity to issue even more guarantees for new projects.
MOBILIST’s investment will also support InfraCredit’s green growth strategy, helping it transition its portfolio towards greater investment in renewable energy sources.
As part of its growth ambitions, InfraCredit will explore a listing on the Nigerian Exchange (NGX). MOBILIST had previously announced a partnership with NGX to encourage greater investment towards achieving the United Nations Sustainable Development Goals (SDGs) through listed products.
This partnership forms part of the UK’s ongoing commitment to supporting Nigeria in developing its capital market.
