AIICO Insurance Becomes InfraCredit’s Second Domestic Institutional Investor
InfraCredit has announced the equity investment by AIICO Insurance Plc (AIICO) representing five per cent of the total share capital of InfraCredit and joining Leadway Assurance Plc as the second private domestic institutional investor.
This new equity investment has thus increased InfraCredit’s paid-in capital base to $175.14 million or N148.55 billion translating to an aggregate guarantee issuing capacity of up to N742.77 billion or $875.7 million.
The equity investment will be part of InfraCredit’s core capital and will enhance InfraCredit’s guarantee issuing capacity to sustain Infra Credits ‘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.
Established in 1963, AIICO Insurance is one of the largest life insurers in Nigeria and a major underwriter for general insurance by premiums written.
Speaking on the investment, the CEO of AIICO Insurance, Babatunde Fajemirokun 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.”
In welcoming AIICO as a new shareholder of InfraCredit, Sanjeev Gupta, Chairman of the InfraCredit Board of Directors said, “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 infrastructure financing sustainably. This investment marks another significant turning point and a significant milestone for InfraCredit, as we aim to increase private sector involvement in the ownership structure.”
Chinua Azubike, the Chief Executive Officer, InfraCredit stated “The admission of AIICO Insurance, the second private domestic institutional investor in InfraCredit, reinforces the confidence in the sustainability of InfraCredit’s unique business model. AIICO’s equity investment further strengthens our core capital base and expands our guarantee capacity as we continue to act as a catalyst to attract domestic credit from pension funds, insurance firms and other long-term institutional investors into credit-worthy infrastructure projects. This equity investment from AIICO aligns with our sponsor’s strategic objective to broaden our investor base through private sector participation, thus expanding our capitalization and strengthening our capacity to deepen market penetration.
“We are pleased to have AIICO as a shareholder, and we aim to strengthen our cooperation towards advancing sustainable finance for impactful Infrastructure projects in Nigeria.”
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