AFC Capital Partners (ACP), the asset management subsidiary of Africa Finance Corporation (AFC), has launched the Infrastructure Climate-Resilient Fund Nigeria (ICRF Nigeria), targeting $150 million to mobilise long-term domestic institutional capital for infrastructure projects.
The ICRF Nigeria, managed by ACP, has been registered with the Securities and Exchange Commission as a closed-end fund. It will channel domestic institutional capital into infrastructure projects in transport and logistics, renewable energy, digital infrastructure, and industrial development.
The Nigerian vehicle is part of ACP’s $750 million Infrastructure Climate-Resilient Fund, which has attracted capital from the Green Climate Fund (GCF), the European Investment Bank, the Development Bank of Southern Africa, Cassa Depositi e Prestiti, the Nigeria Sovereign Investment Authority, and African pension funds.
The wider fund has received a $253 million first-loss commitment from the GCF, its largest equity investment in Africa to date. ACP expects the broader vehicle to mobilise up to $3.7 billion and invest across 10 to 12 infrastructure projects in Africa.
The structure is designed to address a funding gap in infrastructure by combining institutional capital with concessional and commercial financing. The first-loss capital is intended to reduce investment risk and attract additional private capital into projects.
Samaila Zubairu, AFC’s president and CEO, said, “Africa is not short of capital. The continent holds more than $4 trillion in domestic resources, including significant pools of confidential long-term capital in pensions, insurance, and sovereign wealth funds. Yet too much of this wealth…
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Read Full Article by Chinwe Michael at businessday.ng
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