IFC commits $50 million debt facility to strengthen InfraCredit

Infrastructure Credit Guarantee Company Plc (InfraCredit), Nigeria’s ‘AAA’-rated specialised infrastructure credit guarantee institution, has announced the execution of a US$50 million subordinated unsecured 10-year debt facility with the International Finance Corporation (IFC), a member of the World Bank Group.

The agreement provides for a total committed facility of $50 million, to be disbursed in two separate tranches of $25 million each. The subordinated facility strengthens InfraCredit’s capital structure, enhancing its capacity to support a growing pipeline of infrastructure transactions and mobilise long-term local currency financing across sectors including renewable energy, climate-smart agriculture, digital infrastructure and green growth, telecommunications, healthcare, transportation and other productive sectors of the Nigerian economy.

IFC joins a broad network of development finance institutions and partners supporting InfraCredit through complementary layers of equity, subordinated debt, portfolio risk-sharing, counter-guarantees, first-loss capital, specialised financing facilities and technical assistance. Together, these partnerships strengthen InfraCredit’s capital architecture and financial leverage.

Kanyi Daily reports that since commencing operations in 2017, InfraCredit has played a catalytic role in the development of Nigeria’s domestic debt capital market by enabling first-of-their-kind transactions, extending corporate bond tenors, broadening institutional investor participation and demonstrating the viability of long-term local currency infrastructure finance.

To date, the company has facilitated over ₦600 billion in long-term local currency financing across 28 infrastructure projects, while supporting 14 first-time issuers in accessing Nigeria’s domestic debt capital market. InfraCredit-guaranteed transactions have contributed to several market milestones, including Nigeria’s first 15-year green infrastructure bond and the extension of corporate bond tenors to as long as 20 years. Its guaranteed infrastructure bonds have consistently attracted strong participation from domestic institutional investors, including 20 of Nigeria’s 25 Pension Fund Administrators, with several transactions recording significant oversubscriptions.

The facility builds on a period of continued institutional evolution for InfraCredit, following the expansion of its domestic institutional shareholder base, its transition to a listed public company on the NASD OTC Securities Exchange, and the continued development of innovative financing solutions that complement its core guarantee business.

Aliou Maiga, IFC’s Financial Institutions Group (FIG) Director for Africa, said the investment reflects IFC’s commitment to strengthening Nigeria’s infrastructure financing ecosystem and mobilising long-term private capital. “By supporting InfraCredit’s institutional capacity, we are helping mobilise domestic resources for infrastructure investments that can drive economic growth, job creation and sustainable development across key sectors of the Nigerian economy,” Maiga said.

Chinua Azubike, Chief Executive Officer of InfraCredit, said building additional institutional capacity has been an important priority as its transaction pipeline grows and financing solutions evolve. “IFC’s investment reinforces that capacity and strengthens our ability to mobilise long-term domestic capital for infrastructure,” Azubike said. “This investment demonstrates the continued confidence of the international development finance community in InfraCredit’s business model.”

The facility reinforces the complementary role that development finance institutions and domestic capital markets can play in expanding long-term local currency infrastructure finance. By strengthening InfraCredit’s capital base and institutional capacity, the facility will support continued market development while broadening the availability of long-term private capital for sustainable infrastructure across Nigeria.