N54bn Projects Set For United Capital’s N150bn Infrastructure Fund
Several projects worth N54 billion that are currently under scrutiny are likely to be the first set to benefit from the new N150 billion naira denominated infrastructure fund launched by United Capital Plc
The projects are renewable energy, agro-industrial parks, energy transition, power, healthcare, housing and hospitality and have all been screened over two years according to Odiri Oginni, the chief executive officer of United Capital Asset Management Limited, the manager of the United Capital Infrastructure Fund (UCIF).
United Capital Plc has just launched an N150 billion Naira denominated Infrastructure Fund for long-term financing of critical infrastructure that would bridge the deficits in Nigeria and sub-Saharan Africa.
The UCIF is expected to complement the federal government which requires about $3 trillion to bridge the infrastructural deficit in Nigeria over the next 30 years, a gap that the Nigerian government is incapable of addressing alone.
The fund which is a product of about two years of extensive planning and appraisal is coming ahead of the N150 billion Infrastructure company being prepared by the Central Bank of Nigeria (CBN) on behalf of the Nigerian government to specifically address the dearth of infrastructure in the country
Speaking on the fund, Oginni explained that during the two years of preparatory activities, the Fund Management team scanned, screened and appraised numerous infrastructure projects, and they are now at advanced stages of conducting due diligence.
Oginni also explained that UCIF is working on building strategic alliances with financing counterparts such as multilateral and public authorities, to ensure that appropriate financing securities and credit enhancement instruments are in place to de-risk the Fund’s portfolio investments.
Leo Okafor, the Group company secretary said the UCIF has been duly registered by the Securities and Exchange Commission (SEC) as a close-ended fund, with a N150 billion issuance program.
The Fund is positioned to finance bankable infrastructure assets that cut across sectors such as power and renewable energy, transportation, agribusiness and industrial infrastructure, healthcare, technology, mass housing, urban and social infrastructure.
United Capital Plc is the Sponsor of the Fund, which is being managed by United Capital Asset Management Limited (“UCAML”) with Africa Finance Corporation as the independent Financial Advisor, to provide additional layers of best practice of corporate governance which enhances the project appraisal and due diligence activities of the Fund Management team.
Peter Ashade, the Group Chief Executive Officer of United Capital Plc at the launch of UCIF, stated that the journey to the launch took almost two years, during which extensive preparatory studies and appraisals were carried out to establish the business case for the Fund, as well as to define a model and governance framework that would provide investors that have an appetite for long-term financing products (such as pension funds and insurance companies), with sufficient confidence of the attractiveness of UCIF, as an investment opportunity”
United Capital Plc is a financial services group with activities that span Investment Banking, Asset Management, Securities Trading, Trustees, Wealth Management and Consumer Finance. The Group is headquartered in Lagos, Nigeria, with pan-nation operations and a presence in West Africa.
Comments are closed.