Credit guarantee company InfraCredit has signed an agreement with the United States Trade and Development Agency (USTDA) to fund infrastructure projects in Nigeria.
Under the terms of their Memorandum of Understanding (MoU), USTDA and InfraCredit will work together to identify infrastructure projects in need of support in key areas of project preparation funding and subsequent credit enhancements.
In a statement made available to Prime Business, the Chief Executive Officer of InfraCredit, Chinua Azubike said the partnership with USTDA “Is catalytic in strengthening local capacities and promoting domestic resource mobilization for infrastructure finance in Nigeria.”
“USTDA’s project preparation and partnership-building activities have supported InfraCredit in executing well-structured, bankable infrastructure projects that can access long-term domestic institutional investments in Nigeria’s debt capital market”, Azubike said.
Infrastructure projects to benefit are those in sectors like transportation, agribusiness, information and communications technology, healthcare and clean energy.
Acting Director of USTDA Enoh Ebong, said the Agency’s experience in project preparation will benefit InfraCredit’s financial guarantees. “Under our partnership, we will leverage each other’s resources to overcome many of the constraints that inhibit the bankability of infrastructure investments in Nigeria”, Ebong was quoted in the statement.
InfraCredit is backed by the Nigerian Sovereign Investment Authority (“NSIA”), Africa Finance Corporation, African Development Bank, GuarantCo, InfraCo Africa, and KfW Development Bank. Currently, the company and USTDA are collaborating with Nigeria’s Hotspot Network Limited to expand digital connectivity in rural communities across the country.