It's been reported that AIICO Insurance Plc recently acquired a 5% shareholding in Infrastructure Credit Guarantee Company Limited.
In the statement released by Infrastructure Credit Guarantee Company Limited (InfraCredit), the firm said that AIICO is now the second home-based institutional investor to be accepted by the infrastructure credit guarantee institution. The first domestic institutional investor was Leadway Assurance Plc.
The statement reads,
Further to this new equity investment, InfraCredit’s paid-in capital base will increase to $175.14m (c. NGN148.55bn) translating to an aggregate guarantee issuing capacity of up to NGN742.77bn (c.USD 875.7 million). The equity investment will be part of InfraCredit’s core capital and will enhance InfraCredit’s guarantee issuing capacity to sustain InfraCredit’s ‘AAA’ credit rating. It will also result in the diversification of InfraCredit’s ownership structure in line with its envisioned capital structure. InfraCredit would continue to deploy innovative credit enhancement solutions in mobilizing private sector financing for infrastructure projects in key sectors of the Nigerian economy.Enlightening more about that investment, Babatunde Fajemirokun, the Chief Executive Officer of AIICO Insurance, states that it signalled its commitment to contributing to the growth of the country.
He said,
- This investment is the evolution of what we at AIICO Insurance believe will be a long-term partnership with InfraCredit. Over the past two years, AIICO Insurance has invested in InfraCredit guaranteed bonds and participated in novel financing arrangements promoted by the company to bring infrastructure investment to areas that have been significantly underserved.
- With this investment, AIICO Insurance underscores its commitment to bridging the infrastructure gap in the country, partnering with InfraCredit for the long haul.
- AIICO’s investment is in line with our vision of creating a strong partnership between the public and private sectors. This partnership aims to attract private sector capital for sustainable infrastructure financing.