AIICO Insurance Plc has made an equity investment in InfraCredit, a specialised infrastructure credit guarantee institution.
This investment, representing 5% of InfraCredit’s total share capital, reiterates the vision of AIICO Insurance in enhancing a long-term partnership and addressing Nigeria’s infrastructure deficit.
The investment of AIICO’s equity capital facilitates InfraCredit’s paid-in capital base to a commendable $175.14 million (N148.55 billion), a move set to significantly boost the institution’s guarantee issuing capacity to N742.77 billion ($875.7 million). This initiative fortifies InfraCredit’s ‘AAA’ credit rating and also diversifies its ownership structure, aligning with the institution’s vision.
Established in 1963, AIICO Insurance stands as one of Nigeria’s largest life insurers and a key underwriter for general insurance premiums. CEO of AIICO Insurance, Babatunde Fajemirokun, pointed to the investment’s enthusiasm, emphasising the company’s dedication to bridging the infrastructure gap in Nigeria.
He cited AIICO’s previous investments in InfraCredit guaranteed bonds and participation in innovative financing arrangements, marking this move as an evolution of a long-term partnership.
Welcoming AIICO as the second private domestic institutional investor, Sanjeev Gupta, Chairman of the InfraCredit Board of Directors, highlighted the essence of private sector involvement in attracting capital for sustainable infrastructure financing. He noted that this investment marks a significant turning point for InfraCredit and a milestone in increasing private sector participation in the ownership structure.
Chinua Azubike, the CEO of InfraCredit, noted the admission of AIICO Insurance as a shareholder, characterising it as a reinforcement of confidence in InfraCredit’s unique business model. He highlighted the importance of AIICO’s equity investment in strengthening core capital and expanding guarantee capacity, facilitating the attraction of domestic credit from various institutional investors.
This collaboration contributes to the advancement of sustainable finance for impactful infrastructure projects in Nigeria. It is a stimulator for increased private sector involvement in infrastructure development, aligning with the broader vision of attracting capital for Nigeria’s critical infrastructure needs.
