InfraCredit, an infrastructure credit enhancement company, has signed a memorandum of understanding to forge a strategic partnership with Bureau of Public Enterprises.
A statement which disclosed this noted that the agreement, which was sealed on Friday, aimed at promoting development and financing infrastructure projects in Nigeria.
According to the statement, both parties have formalised an interest in building a strategic partnership, and have agreed to the formation of a strategic alliance to facilitate collaboration on eligible infrastructure financing projects, capacity building, information and data sharing.
InfraCredit is an ‘AAA’ rated infrastructure credit enhancement facility backed by the Nigeria Sovereign Investment Authority, GuarantCo (a Private Infrastructure Development Group company), KfW Development Bank and Africa Finance Corporation to provide local currency guarantees to mobilize long term private capital for infrastructure financing in Nigeria.
InfraCredit’s guarantees act as a catalyst to attract the investment interest from pension funds, insurance firms and other long-term investors into infrastructure.
BPE is charged with driving the Federal Government of Nigeria’s programme of privatising public enterprises as well as carrying out sector reforms and facilitating the liberalisation of key sectors of the Nigerian economy; particularly the infrastructure sector which aligns with InfraCredit’s mission to mobilize long term local currency private infrastructure financing in Nigeria.
The statement explained that the partnership “is in line with InfraCredit’s strategy to promote a more aligned approach and coordinated relationships with governments and its agencies towards supporting an enabling environment and building investor confidence that can unlock domestic credit to the private sector from local pensions funds, to finance infrastructural development that will create jobs, and promote local economic growth.”