This comes as calls for infrastructure development and diversification of the economy are louder than ever following the exogenous shocks from falling oil prices and its attendant effects on the country’s economy.
Formerly known as the Urban Development Bank of Nigeria, The Infrastructure Bank dubbed it the Nigeria Infrastructure Fund 1 (NIF1); it’s focus is to set up, invest in and lend to greenfield and brownfield public private partnership projects, primarily within the Nigerian infrastructure space.
“The objective of setting up the Fund was premised on the drive to bridge the mammoth infrastructure deficit in the country. In addition to the preservation of and return on
investors’ funds, the NIF1 has the mandate to focus on projects with high potential for the promotion of inclusive growth and socio-economic development, with the resultant effect of reducing the cost of doing business and enhancing the quality of lives of the Nigerian masses,” a statement from the TIB disclosed.
The fund shall be managed by The Infrastructure Bank Asset Management Company Limited (TIBAML), a subsidiary of TIB, under the overall guidance of its management and Board of Directors. Primary focus sectors for the fund, according to the statement, will be transportation, municipal common services and utilities, power and renewable energy, oil and gas logistics services as well as real estate and telecommunications.
“The opportunity to establish the Fund is underpinned by the ability of the partners to identify, structure and invest in long-term infrastructure projects that have the potential to generate stable, predictable, and recurring cash flow as well as ensure high returns with strong economic performance. The Fund shall invest a certain portion of its portfolio as equity/quasi-equity to attract other apposite capital instruments suitable for infrastructure development in an emerging market such as Nigeria,” the statement added.
As the fund commences around mid-2015, it is expected to trigger very unique opportunities for local and international investors who are particularly interested in infrastructure. The end result, as envisaged by TIB, is a significant infrastructure upgrade whose multiplier effect stimulates further economic development and boosts GDP in a sustainable fashion.
Chief Executive Officer of TIB, Adekunle AbdulRazaq Oyinloye, commenting on the new partnership, said; “the setting up of NIF1 is a landmark transaction within the infrastructure financing landscape and another important step by The Infrastructure Bank Plc in its efforts to bridge the infrastructure gap across the country by attracting foreign and local investors”.
According to its website, TIB is Nigeria’s dedicated infrastructure bank providing financial solutions to support key long term infrastructure projects, including transportation infrastructure, municipal common services, mass housing and district development, solid waste management and water provision, and power and renewable energy projects.
No comments:
Post a Comment