Stanbic IBTC Asset Management, a subsidiary of Stanbic IBTC Holdings, has announced the NGN19.997 billion Series III offer (the “Series III Issuance”) under its Stanbic IBTC Infrastructure Fund (the “Fund”) NGN100 billion Programme.
The offer opened on Friday, 25 November 2022 and is scheduled to close on Wednesday, 21 December 2022.
The Fund aims to bridge the funding gap in Nigeria’s infrastructure sector through investing in a careful selection of eligible infrastructure investments across core infrastructure sectors in Nigeria.
The Fund, structured as a close-ended collective investment scheme, seeks to provide a target return of 2% to 5% above the prevailing yield on a Federal Government of Nigeria Bond with a similar tenor to the remaining tenor of each series.
The Series III Issuance is for a tenor of 10 years and offers 188,650,000 units of NGN100 each issued at NGN106.00 per unit under the Stanbic IBTC NGN100 billion Infrastructure Fund Programme.
Commenting on this development, Dolu Olugbenjo, Chief Investment Officer, of Stanbic IBTC Infrastructure Fund, noted that the Fund has made significant strides to meet its commitment to investors and its dedication to developing Nigeria’s capital market.
The Fund has successfully made cash distributions to eligible unitholders in three incremental instalments within the first nine months of operation and had successfully raised capital over the last two issuances with proceeds disbursed to impact investing.
The Fund also continues to support projects that provide real developmental impact and has invested in infrastructure deals in healthcare and energy sectors that have created direct and indirect employment opportunities for the projects’ host communities.
According to Dolu, “The Series III Issuance provides an opportunity for the Fund to consolidate on progress made thus far, by using the capital raised to provide debt financing to support a strong portfolio of infrastructure and infrastructure-related projects within Nigeria.
The target project sectors for the Stanbic IBTC Infrastructure Fund cover a broad array of sectors including energy, healthcare, information and communication technology, telecommunications, real estate, and transportation and logistics sectors.”
“We encourage qualified institutional investors and high net-worth individual investors to continue participating in the Stanbic IBTC Infrastructure Fund issuances as partnering with us helps bridge the existing infrastructure asset gap that would deliver positive social and economic multiplier effects,” Dolu added.