Infracredit Admits AIICO Insurance Plc As Its Second Domestic Institutional Investor

Lagos, 29 November 2023: InfraCredit, a ‘AAA’ rated specialized infrastructure credit guarantee institution is pleased to announce the equity investment by AIICO Insurance Plc (“AIICO”) representing five percent of total share capital of InfraCredit and joining Leadway Assurance Plc as the second private domestic institutional investor.

Further to this new equity investment, InfraCredit’s paid-in capital base will increase to US$175.14 million (c. NGN148.55 billion) translating to an aggregate guarantee issuing capacity of up to NGN742.77 billion (c.USD 875.7 million). The equity investment will be part of InfraCredit’s core capital and will enhance InfraCredit’s guarantee issuing capacity to sustain InfraCredit’s '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, CEO, AIICO Insurance, Mr. 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, Mr. 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 in a sustainable manner. 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.”

Commenting on the new equity investment, Mr. 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.”

InfraCredit is a ‘AAA’ rated specialised infrastructure credit guarantee institution backed by the Nigeria Sovereign Investment Authority, GuarantCo & InfraCo Africa (Private Infrastructure Development Group companies), KfW Development Bank, Africa Finance Corporation, and African Development Bank, to provide local currency guarantees and mobilize long term debt financing for infrastructure in Nigeria. InfraCredit’s guarantees act as a catalyst to attract domestic credit from pension funds, insurance firms and other long-term investors into credit-worthy infrastructure projects, thereby deepening the Nigerian debt capital markets. InfraCredit operates on a commercial basis with a developmental role and benefits from private sector governance. InfraCredit maintains the highest domestic financial strength ratings accorded to any financial institution by Agusto and Co. and Global Credit Ratings Co., two of the major domestic credit rating agencies.

Established in 1963, AIICO Insurance is one of the largest Life Insurers in Nigeria and a major underwriter for General Insurance by premiums written. As a stalwart in the industry, AIICO is dedicated to providing comprehensive life, health, general insurance, and investment management services. Over six decades, the company has consistently demonstrated a commitment to creating and safeguarding wealth for individuals, families, and corporate clients. AIICO Insurance continues to be at the forefront of the insurance landscape, embodying a legacy of trust, innovation, and unwavering service to its diverse and valued clientele. AIICO has an estimated NGN270*billiion (FY 22) assets and a proven record of sustained profitability