InfraCredit Completes Drawdown Of AfDB’s $10m Loan Agreement
InfraCredit, an ‘AAA’ rated specialised infrastructure credit guarantee institution, says it has completed the drawdown of $10m subordinated unsecured 10-year facility under the subordinated loan agreement with the African Development Bank, an international financial institution and multilateral development bank.
It said this in a statement on Wednesday entitled ‘InfraCredit completes drawdown of AfDB $10m subordinated unsecured 10-year facility.’
A statement by the bank’s Director of Financial Sector, Stefan Nalletamby, at the time of the bank’s board approval of the facility, said, “The bank’s support will strengthen the capital base of InfraCredit, underpinning the expansion of the company’s core business of guaranteeing of bonds issued to fund infrastructure projects.
“This adds to the bank’s existing initiatives to mobilise domestic institutional savings and stimulate non-sovereign local debt capital market development in Nigeria.
“This ultimately helps to increase private sector financing for critical infrastructure projects in key sectors including energy, agriculture, water, health and education, through local capital markets.”
Specifically, the statement said the facility would help to increase private sector financing for critical infrastructural projects in sectors such as power, renewable energy, telecommunications, healthcare, transportation and agriculture, among others.
It stated, “This investment by AfDB demonstrates the strong investor confidence in the fundamentals of InfraCredit’s business and will promote the deepening of the local debt capital market.
“Pursuant to the drawdown, InfraCredit’s capital base will increase to $146 (N58.5bn).”
The Chief Executive Officer, InfraCredit, Chinua Azubike, stated, “Despite the impact of COVID-19, and changes to macro-economic assumptions, we are pleased to have reached yet another milestone in our pursuit to strengthen our robust balance sheet and guarantee issuing capacity.”