Nigeria-based AIICO Insurance acquires 5% stake in InfraCredit
AIICO Insurance Plc has become the second private domestic institutional investor in InfraCredit, following Leadway Assurance Plc's initial involvement. AIICO's investment, constituting 5% of InfraCredit's share capital, has bolstered the institution's paid-in capital to $175.14 million (N148.55 billion).
This injection of capital has significantly increased InfraCredit's credit guarantee capacity to an impressive $875.7 million (N742.77 billion). AIICO Insurance's CEO, Babatunde Fajemirokun, emphasized the company's longstanding relationship with InfraCredit, having previously invested in InfraCredit guaranteed bonds and other financing arrangements promoted by the institution.
This strategic move not only deepens AIICO's involvement in infrastructure financing but also strengthens InfraCredit's position in facilitating critical investments for infrastructure projects in Nigeria.
Key Takeaways
InfraCredit operates as an AAA-rated specialized infrastructure credit guarantee institution, benefiting from support from significant financial entities, including the Nigeria Sovereign Investment Authority, GuarantCo, InfraCo Africa (Private Infrastructure Development Group companies), KfW Development Bank, Africa Finance Corporation, and the African Development Bank. Functioning as a catalyst, InfraCredit plays a crucial role in mobilizing long-term funding for infrastructure projects within Nigeria. The institution attracts local currency credit from diverse sources such as pension funds, insurance firms, and other long-term investors for these projects. AIICO Insurance's equity investment in InfraCredit not only enhances its core capital base but also expands the guarantee capacity of InfraCredit. This strategic move positions AIICO to continue playing a catalytic role, attracting domestic credit from pension funds, insurance firms, and other long-term institutional investors to support credit-worthy infrastructure projects in Nigeria.
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