11th Jan 2017
The Banking & Finance Practice Group of Jackson, Etti & Edu recently participated in a landmark structured financing involving both GuarantCo and Infracredit Limited, a special purpose vehicle specifically sponsored by the Nigerian Sovereign Wealth Investment Authority to provide credit enhancements for infrastructure debt financing and ultimately catalyse infrastructure projects in Nigeria.
We represented GuarantCo, the largest local currency infrastructure guarantor in the world, in structuring and documenting the revolving recallable funding facility which was to be utilized as tier 2 capital by Infracredit Limited.
The transaction epitomizes a significant milestone in the Nigerian infrastructure space given its novelty and potential to unlock inherent liquidity domiciled with Nigerian pension funds, insurance and Sovereign Wealth Funds. The provision of contingent capital by GuarantCo will not only enable Infracredit Limited expedite on its core mandate to enhance the credit quality of local currency debt instruments issued to finance infrastructure related assets in Nigeria but also incentivise proliferation of infrastructure projects in Nigeria.
Abayomi Adebanjo, Managing Associate, commented:
“Against the backdrop of a challenging year, this transaction illustrates the inherent resilience of the structured finance market and capacity of its participants to innovate. The Banking & Finance team is privileged to have assisted in the birth of an enabler of and incubator for teeming infrastructure projects”.