11 December 2020
TEMPLARS has advised InfraCo Africa, a member of the Private Infrastructure Development Group (PIDG), on its US$27 million equity investment in InfraCredit, a ‘AAA’ rated specialised infrastructure credit guarantee institution based in Lagos, Nigeria.
The equity investment, made through its dedicated investment vehicle, InfraCo Africa Investments, marks the vehicle’s first major transaction and makes InfraCo Africa an equivalent shareholder alongside the Nigeria Sovereign Investment Authority (NSIA, managers of the Nigeria Sovereign Wealth Fund) and Africa Finance Corporation.
The new equity investment increases InfraCredit’s total capital base, translating to an increased aggregate guarantee-issuing capacity. The investment will also boost confidence in InfraCredit’s credit standing, enhancing its ability to continue to provide private sector financing for infrastructure projects in key sectors of the Nigerian Economy.
The TEMPLARS team on the transaction was led by Finance Partner Zelda Akindele, with support from Associates Benita Ogbodo and Ojonugwa Ichaba. Senior Associate Chidiebere Ejiofor from the Litigation & Arbitration team provided additional support on issues bordering on dispute resolution.
Commenting on the transaction, Zelda said ‘’we are pleased to have supported our client on this important transaction, coming at a critical time for global economies and infrastructure development in Nigeria. This investment is symbolic of InfraCo Africa’s commitment to the region and we believe that it will strengthen the InfraCredit base to continue to support important infrastructure projects across Nigeria’’.