Managing Director/Chief Executive Officer, Leadway Assurance Company Limited, Tunde Hassan-Odukale.
InfraCredit announced on Wednesday the equity investment of $5m by Leadway Assurance Company Limited, saying the insurance provider has become the first private institutional investor member of the shareholder group in InfraCredit.
InfraCredit said in a statement that with the new equity investment, its total capital base – paid-in and callable capital – would increase to $183m (about N75.3bn), translating to an aggregate guarantee issuing capacity of up to N376.4bn ($915m) based on its current maximum capital leverage ratio of up to 5x allowable by its rating agencies.
Speaking on the investment, the Chief Executive Officer, Leadway Assurance, Mr Tunde Hassan-Odukale, said InfraCredit was bridging a significant infrastructure gap in Nigeria through the mobilisation of private capital.
He was quoted as saying, “Through the realisation of the critical role an enabling infrastructure plays in the development of the social-economic conditions in our country, we see a strong alignment in Leadway and InfraCredit’s mission of supporting our clients in building a more resilient Nigeria.
“InfraCredit’s vision, strong governance and execution capability reinforced our decision to support InfraCredit in its quest to unlock long term local currency capital for infrastructure development in Nigeria through this equity participation.”
Hassan-Odukale expressed excitement at the development impact of the investment and the positive trajectory of InfraCredit’s operations and outlook.
“We look forward to working with InfraCredit to contribute to Nigeria’s infrastructure development and to fulfill our ESG-inclined investment principles,” he added.
The Chairman, Board of Directors and MD/CEO, Nigeria Sovereign Investment Authority, Uche Orji, welcomed Leadway as a new shareholder of InfraCredit.
According to him, the investment aligns with the firm’s vision of creating an effective public-private-partnership, relevant for crowding-in the private sector capital towards infrastructure financing in a sustainable way.
“It’s an inflection point and exciting milestone in diversifying the capital structure of InfraCredit, as we look forward to deepening private sector participation in the ownership structure,” he was quoted as saying.
The Chief Executive Officer, InfraCredit, Chinua Azubike, said Leadway’s equity investment further strengthened the company’s core capital and guarantee capacity as it continued to unlock private capital for infrastructure development in a sustainable manner.
He said, “More so, this equity investment from Leadway aligns with our strategic objective of diversifying the shareholder base towards our envisioned capital structure, with requisite participation from leading private institutional investors.
“We welcome Leadway as a shareholder, with optimism that its equity participation in InfraCredit would consolidate our partnership towards enhancing infrastructure financing and accelerating economic growth.”