Triple Rated Companies: What Makes Them Thick (Part 4 of 5)

Triple Rated Companies: What Makes Them Thick (Part 4 of 5)

Addressing Nigeria’s infrastructure gap has been an ongoing endeavor, and in 2017, a significant milestone was achieved with the establishment of the Nigerian Infrastructure Credit Enhancement Facility, or InfraCredit. This Lagos-based credit guarantee institution has been pivotal in reshaping the landscape of local infrastructure development by offering Naira-denominated guarantees. These guarantees empower infrastructure projects to secure debt finance in local currency from the domestic market, thereby spurring essential development within the country.

Since its inception, InfraCredit has achieved remarkable feats, including earning a National Rating of AAA from an international Credit Rating Agency (CRA). This coveted rating underscores its substantial investment risk, attributed to its significant exposure to Nigerian sovereign bonds. However, this risk is balanced by its robust capitalization, favorable leverage, and a distinguished business profile as a guarantor of Nigeria’s infrastructure projects.

The CRA’s assessment designates InfraCredit’s profile as “favorable,” highlighting its niche role as a financial guarantor for crucial infrastructure ventures within Nigeria. While the scope of its guarantee activities is confined to Nigeria, they span across diverse regions and sectors within the nation. Remarkably, InfraCredit stands alone in its specialized focus, rendering it without direct competitors on the local front.

Anticipating the continuous expansion of operations, the CRA expects InfraCredit’s economic scale to further improve over time.

The CEO of InfraCredit, underscored the myth-busting reality that investing in well-structured infrastructure projects carries less risk than commonly perceived. He shared that InfraCredit’s core objective is to render these projects more appealing to investors, thereby contributing to Nigeria’s economic advancement.

His belief was that well-structured infrastructure ventures, particularly those financed in local currency, possess one of the lowest default rates globally, particularly in the African context.

As InfraCredit continues to champion a resilient path for infrastructure growth, its journey remains a beacon of hope for Nigeria’s economic evolution.


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