FSD Africa Innovates with £10M Infusion into InfraCredit, Empowering Nigeria’s Sustainable Climate Infrastructure Transformation

FSD Africa Investments (FSDAi), in collaboration with InfraCredit, have invested £10m into a first-of-its-kind risk-sharing backstop facility, designed to unlock local currency funding for sustainable infrastructure development in Nigeria.

The Risk Sharing Backstop Facility (RSBF) will address the challenge of low credit enhancement by mobilising local institutional investment via bonds into viable early-stage or green-field climate-aligned infrastructure projects.

By increasing the accessibility of finance for the “climate-aligned” infrastructure projects, the facility will help Nigeria accelerate her social and economic development, green economic transition as well as deliver on its climate goals.

Backed by the UK International Development through the Foreign, Commonwealth and Development Office (FCDO), FSDAi is pleased to be undertaking this £10m investment in partnership with InfraCredit – an established player in the sustainable infrastructure financing space.

InfraCredit’s current investments and project pipeline demonstrates the breadth and variety of projects this facility will support, with projects ranging from distributed renewable energy services for urban residences, to commercial and industrial renewable projects, edge-certified green housing and e-mobility infrastructure.

The RSBF will raise funding in series, initially from FSDAi, and eventually from other funders – aiming to reach a total capital base of up to US$50m.This investment therefore aligns with one of FSD Africa’s primary objectives – developing capital markets by tackling blockages in the system

UK Foreign Secretary, James Cleverly MP said:“This investment further demonstrates the UK’s commitment and contribution to Nigeria’s transition to clean energy and builds on decades of UK leadership in mobilising support for climate-related infrastructure challenges.”

“Just like the successes of British International Investment (BII) and our Private Infrastructure Development Group (PIDG), I am optimistic that InfraCredit will continue to grow and mobilise even more private sector capital to invest in better, greener infrastructure.”

Chief Investment Officer, FSD Africa Investments, FSD Africa, Anne-Marie, said: “FSDAi’s partnership with InfraCredit on the bridge-to-bond facility introduces a derisking financing solution to mobilize short and medium-term local institutional investment into critically needed infrastructure projects that are currently considered un-bankable without alternative credit enhancement.

 “Moreover, as Africa’s economies struggle to mobilise capital to develop key climate mitigation and sustainable power generation projects, this facility comes as a timely and much-needed intervention for Nigeria’s infrastructure landscape.’’

Chief Executive Officer, InfraCredit, Chinua Azubike, said: “I am delighted to work with FSD Africa Investments on an innovative facility which will support much needed but underfinanced projects realise their ultimate goals and purpose.

 “Smart use of catalytic capital can dramatically increase the role of private capital and local intermediaries in investing in Nigeria’s sustainable infrastructure space and help the country develop responses to the significant challenges which confront it from the deteriorating environment and ecology to an unstable energy mix and severe social inequality.” 

Source: AfricanBussinessCommunity

Checkout Investor Finder by GetFundedAfrica

Investor Finder, by GetFundedAfrica, is your ultimate solution for finding investors and securing venture capital funding for your business. With Investor Finder, you can significantly increase your chances of long-term growth by expanding your investor network. 

Key Features: 

How It Works:

Investor Finder operates through three simple steps: 

Sign up: Get started by signing up for a free trial. No credit card is required for the trial period. 

Find Investors: Use powerful AI algorithms to discover potential investors that align with your business goals and objectives. 

Manage and Engage: Once you’ve identified suitable investors, connect and interact with them directly through the platform. Manage your relationships and track your progress towards securing funding. 

Pricing: Investor Finder offers a free trial with limited access to investors. For detailed pricing information and to explore the full features, please visit the GetFundedAfrica website or contact their sales team. 

It’s time to accelerate your fundraising journey and propel your business forward. Sign up now for a free trial of Investor Finder. No credit card is required! Don’t wait; seize this opportunity and unlock the path to success. 

Click here to get started and revolutionise your investor network: 

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button