InfraCredit will use the financing to tap into Nigerian capital markets, which in turn will increase its access to long-term local currency infrastructure loans.
To help unlock domestic institutional capital for infrastructure, in 2019 the African Development Bank invested into InfraCredit alongside other partners.
InfraCredit's loan comes as it seeks to raise capital in order to finance infrastructure projects worth an additional $375 million over the next few years. InfraCredit will primarily leverage private sector financing for this purpose.
Chinua Azubike, InfraCredit CEO, said, “We are delighted and very pleased with the confidence that AfDB has demonstrated in the opportunity ahead for InfraCredit to scale its development impact of unlocking domestic institutional investments for long-term local currency infrastructure finance in Nigeria that will create jobs and support local economic growth.
Ahmed Attout, the African Development Bank's acting director for financial sector development, remarked: “This support demonstrates our continuing confidence in InfraCredit and its role in Nigeria’s infrastructure development.
“The African Development Bank is committed to capacitating the various players within Africa’s capital markets and stimulating the mobilization of long-term funding into Africa’s infrastructure.”
