InfraCredit

MOBILIST invested in the initial public offering (IPO) of InfraCredit, Nigeria’s first and only domestic creditor guarantor, on the Nigeria NASD OTC Exchange Plc (NASD). The programme has successfully exited this investment through the secondary sale of its shares to five Nigerian pension funds.

InfraCredit provides local currency guarantees to enhance the creditworthiness of domestic Nigerian infrastructure debt securities. This attracts investment from local institutional investors, most notably pension funds, thereby enabling more domestic capital to flow to towards Nigerian infrastructure development.

Through listing on the NASD with MOBILIST’s backing, InfraCredit attracted direct equity investment from two pension funds, enabling the company to raise $17.7 million in new equity and expand its capacity to provide guarantees.

The sale of MOBILIST’s shares allowed five Nigerian institutional investors to become shareholders in InfraCredit, including four who had not invested at the time of the original listing. This helped attract more local investment into infrastructure development.

The transaction was also an important milestone for MOBILIST, showing that it is possible to exit investments in a way that adds value. It also helped create activity in the market by sending a clear signal to other potential investors that there is real demand for InfraCredit’s shares.

InfraCredit was established in 2017 with the support of GuarantCo, a Private Infrastructure Development Group (PIDG) company, and the Nigeria Sovereign Investment Authority (NSIA). InfraCo Africa, another PIDG company, became an investor in 2020. InfraCredit has since put in place financing partnerships with UK entities British International Investment (BII) and Financial Sector Deepening Africa (FSDA).