NSIA Partners GuarantCo To Establish A Credit Enhancement Facility Company

The Nigerian Sovereign Investment Authority (NSIA) is partnering with GuarantCo to set up a Credit Enhancement Facility Company that will enable pension funds to invest in Nigerian Infrastructure bonds. The new company will serve as a facility to help provide credit enhancements for infrastructure projects in Nigeria.

The new venture will provide a form of monoline insurance, giving a guarantee and allowing pension funds and insurance companies to invest.

The company is expected to be launched in a few weeks’ time and it aims to boost the financing of infrastructure projects in Nigeria.

GuarantCo is a London-based development financing institution supports infrastructure related projects in low-income African, Middle East, and Asian countries by issuing guarantees in local and international currencies to banks and bond investors. It specialises in frontier market infrastructure. The governments of Netherlands, Sweden, Switzerland, and the United Kingdom are sponsors of GuarantCo. The company is rated AA- by Fitch and A1 by Moody’s.

Nigeria Sovereign Investment Authority (NSIA) is the Nigerian investment institution that manages the Nigeria sovereign wealth fund. The sovereign wealth fund was established in 2011 for the purpose of managing and investing the funds obtained from the surplus of the excess oil reserves on behalf of the government of Nigeria.