InfraCredit and African Trade & Investment Development Insurance (ATIDI) Sign Local Currency Counter-Guarantee Agreement

InfraCredit, a specialized infrastructure credit guarantee institution in Nigeria and the African Trade & Investment Development Insurance (“ATIDI”), a pan-African multilateral development finance institution that provides risk solutions headquartered in Kenya, have signed a local currency counter-guarantee agreement on a portfolio risk sharing arrangement of NGN37 billion (US$40.7million) to support seven (7) infrastructure portfolio companies of InfraCredit across seven sectors including energy, healthcare, manufacturing (inputs to infrastructure) and logistics.

The signing of the counter-guarantee agreement is in line with the Memorandum of Understanding executed by the two institutions in March 2022, under which InfraCredit and ATIDI agreed to collaborate and work together as risk-sharing partners, within the context of their respective mandates, policies, resources and instruments, to provide credit guarantees, co-guarantees and counter-guarantees/reinsurance, as applicable, on eligible infrastructure financing transactions.

This portfolio counter guarantee arrangement follows from the established strategic partnership between InfraCredit and ATIDI on a transaction basis, the first being the risk sharing arrangement on a 10 year 10-billion-naira digital infrastructure bond (US$24 million equivalent) issued in 2022 and subscribed by domestic pension funds.