FSD Africa Investments (FSDAi) has announced a £10 million (roughly $13 million) investment in a pioneering risk-sharing backup facility in collaboration with InfraCredit.
The initiative targets the augmentation of local currency financing for Nigeria’s prolonged infrastructure evolution.This innovative facility (RSBF) aims to devise a solution to the prevalent issue of inadequate credit enhancement.
The facility plans to accomplish this by endorsing local institutional investment via bonds into nascent or novel infrastructure projects that align with climate considerations.
The expectation is that this will boost the financial resources accessible for infrastructure ventures in tune with climate change.
Consequently, Nigeria can look forward to accelerated socioeconomic progress, transitioning towards a green economy, and accomplishing its climate objectives.
In partnership with InfraCredit, a notable player in sustainable infrastructure financing, FSDAi, which receives support from UK International Development via the Foreign, Commonwealth, and Development Office (FCDO), has shown enthusiasm about this £10 million investment.
InfraCredit’s existing investments and project pipeline reflect the range and scope of the ventures this facility is set to support.
These initiatives encompass edge-certified green housing, decentralized renewable energy services for urban residences, commercial and industrial renewable projects, and electronic mobility infrastructure.
Anne-Marie, Chief Investment Officer at FSD Africa Investments, FSD Africa, remarked, “Our alliance with InfraCredit presents a de-risking financing solution that can stimulate short and medium-term local institutional investment into infrastructure projects currently perceived as non-bankable without alternate credit enhancement.
InfraCredit’s Chief Executive, Chinua Azubike, stated, “We’re thrilled to collaborate with FSD Africa Investments on this novel facility, backing underfunded projects to attain their goals. The strategic use of catalytic capital can considerably amplify the contribution of private capital and local intermediaries in Nigeria’s sustainable infrastructure sector, aiding the country in tackling major issues like environmental degradation, an unstable energy mix, and severe social inequality.”