Four independent asset managers sign InfraCorp term sheet

FOUR infrastructure asset managers – the AAA Consortium, Chapel Hill Denham, Africa Infrastructure Investment Managers here in Nigeria and Sanlam Infraworks under the supervision of the governor of the Central Bank of Nigeria (CBN) – have signed the Infrastructure Corporation of Nigeria (InfraCorp) term sheet.

This signifies their readiness to operate together to deliver infrastructure to the nation.

The chairman of InfraCorp and CBN Governor, Godwin Emefiele, during the signing ceremony in Lagos on Friday said the corporation was open for business to both local and foreign investors.

The corporation is expected to raise over N15 trillion to support investment in critical infrastructure in Nigeria and so far, N1 trillion has been provided as seed funds by the promoters to support the operations of InfraCo.

Emefiele said that if the private sector is correctly incentivised, it has the ability to deploy the critical resources and capacity to deliver successfully.

Since July 1, 2020 when President Muhammadu Buhari gave approval, Emefiele disclosed that the promoters – the bank, the Africa Finance Corporation and the Nigerian Sovereign Investment Authority – have worked assiduously with the transaction adviser, KPMG and the legal advisers, Kenna Partners, Olaniwun Ajayi, and Ukiri and Lijadu, to deliver InfraCorp as a catalyst to accelerate public-private solutions for infrastructure.

“For infrastructure projects originated by the public sector, InfraCorp’s goal is to shape projects for private sector financing and management. For projects originated by the private sector, InfraCorp will help shape government policy to support and sustain private sector investment,”  Emefiele explained.

Emefiele acknowledged fellow promoters – the Africa Finance Corporation (AFC) and the Nigerian Sovereign Investment Authority (NSIA), fellow board members – the Debt Management Office (DMO) and the independent non-executive directors, and the Presidency.

He also congratulated Dr Lazarus Angbazo on his appointment as the foundation Chief Executive Officer and Managing Director of InfraCorp, as he drives the company to deliver on its mandate to Nigeria.

According to him, for Nigerian companies to focus successfully on their competencies, they need to be assured of the infrastructure that they rely upon.

“The deficit may be large, however, with resources from the private sector, targeted incentives from the public sector and the drive of our individual citizens, I strongly believe that Nigeria will be ready, willing and able to deliver the infrastructure that will be the foundation of our development.”

Also speaking, Dr Angbazo expressed joy over the opportunity to drive development and innovation in infrastructure solutions for Nigeria.

He said InfraCorp’s unique mandate consolidates the great work that the promoters are doing.

“I look forward to working with all stakeholders to deliver competitive returns for shareholders, while driving new frontiers for Nigeria’s sustainable infrastructure development.

“Massive financing is urgently required to build the infrastructure that Nigeria deserves,” said Angbazo.

According to him, the good news is that much of this investment is compatible with competitive returns for investors through leveraging the expertise, relationships, and blended finance models.

He further explained that InfraCorp would employ development finance, commercial debt, and private equity structures, supported by a blend of concessional finance, grants and “soft equity” alongside commercial equity provided by development finance institutions, private equity funds, pension fund managers and commercial investors.

Angbazo brings over 25 years of experience in infrastructure project development, investments and capital raising, setting up new businesses and leading global management teams. He has deep knowledge of African markets and has worked across InfraCorp’s priority sectors including power, renewables, transport and logistics, and industry.

Dr Angbazo was most recently Partner, Head of Portfolio Operations West Africa, at Helios Investments Partners and former President and CEO of General Electric Nigeria, managing GE’s businesses in power, oil & gas, renewables, healthcare, transportation, aviation, and GE capital.

He serves on several public and private company boards including Nasarawa State government’s Economic Advisory Council, Bingham University, Axxela, Tema LNG, AFGRI, Starsight, Partners International, and Opportunity International.