African Trade & Investment Development Insurance (ATIDI has announced the issuance of a portfolio counter guarantee cover valued at $41 million to InfraCredit, a AAA-rated specialised infrastructure credit guarantee institution in Nigeria.

InfraCredit provides local currency guarantees aimed at enhancing credit quality of debt instruments issued to finance creditworthy infrastructure assets in Nigeria. The Nairobi-based pan African multilateral insurer said the move underscores its commitment to bolster infrastructure financing initiatives in Africa’s largest economy.

Commenting on ATIDI’s commitment to supporting risk mitigating associated with infrastructure financing, ATIDI Chief executive Manuel Moses (pictured, left) said the move was vital in catalysing investment and fostering development in a vital sector.

“The portfolio counter guarantee provides a vital layer of protection, instilling confidence among investors and stakeholders while enabling InfraCredit to expand its reach and impact in facilitating access to affordable financing for critical infrastructure projects nationwide,” he said.

This collaborative effort, Manuel added, underscores the shared vision of ATIDI and InfraCredit in driving sustainable growth, enhancing resilience, and advancing Nigeria’s infrastructure development agenda.

Cost of capital

InfraCredit CEO Chinua Azubike said the firm is proud of the growth of its partnership with ATIDI, through this second risk sharing transaction, a first of its kind local currency portfolio counter-guarantee transaction.

He said the partnership will enhance InfraCredit’s capacity to issue more guarantees that will reduce the cost of capital and crowd in larger scale domestic credit, particularly from local pension funds and insurance investors to finance infrastructure development in Nigeria.