A team of corporate, energy and Africa projects experts at international law firm Gowling WLG has advised PIDG company InfraCo Africa on a US$27 million equity investment into InfraCredit, a specialised local currency infrastructure credit guarantee institution based in Lagos, Nigeria.
Led by partners Gareth Baker and Jonathan Brufal, and principal associates Dhruv Chhatralia and Stephen Bowman, and supported by partners Tom Price and Catherine Naylor, the transaction makes InfraCo Africa an equivalent shareholder alongside the Nigeria Sovereign Investment Authority (NSIA) and Africa Finance Corporation (AFC).
InfraCredit was established to act as a market champion for the development of the local debt capital markets and to mobilise long-term investment from local institutional investors and finance infrastructure projects in Nigeria in local currency.
Pursuant to the new equity investment, the deal increases InfraCredit's total capital base to US$173 million, translating to an aggregate guarantee issuing capacity of up to NGN 342 billion (c. US$865 million).
Gareth Baker said: "After working with the InfraCo Africa team earlier this year on a multi-million dollar joint venture to deliver a significant infrastructure development in Liberia, it is great to be working with the team again. The team has completed an impressive number of transactions across sub-Saharan Africa this year."
Jonathan Brufal said: "We are delighted that the team has been able to support InfraCo Africa on yet another landmark transaction on the continent. InfraCo Africa and PIDG are key clients in the firm's expanding emerging markets practice."
Templars supported Gowling WLG on the transaction.
This latest deal continues the firm's leading advisory work to PIDG companies including GuarantCo and Emerging Market Infrastructure Fund, and marks another success with InfraCo Africa. It also follows the team's recent Legal 500 UK 2021 emerging markets ranking and naming of Jonathan Brufal as a leading individual in the sector.