Stanbic IBTC Introduces Infrastructure Fund to bridge the Infrastructural Deficit in Nigeria.
Like many other African countries, Nigeria has a significant infrastructure deficit and ranks high on the list of countries requiring urgent infrastructure investments. Analysts have estimated that Nigeria needs around three trillion dollars to solve its infrastructural challenges over the next 30 years.
Stanbic IBTC Holdings Plc, as a corporate organisation, continuously thinks of ways to ensure that its business activities benefit everyday Nigerians and has, therefore, recently introduced the Stanbic IBTC N100 billion Infrastructure Fund to help with addressing Nigeria’s infrastructural gap. The project will be executed by one of its subsidiary companies, Stanbic IBTC Asset Management.
Corporate organisations and high net worth individuals are encouraged to explore Stanbic IBTC’s N100 billion Infrastructure Fund as they most stand to gain long-term value from the Fund, which is projected to deliver returns above the Federal Government Bonds. The Fund, according to Stanbic IBTC, will help Nigeria close its infrastructure gap by linking investors with long-term capital with projects that require long-term funding while enabling them to achieve their investment goals.
Dolu Olugbenjo, Chief Investment Officer, Stanbic IBTC Infrastructure Fund, stated that the establishment of the Fund was borne out of the need to bring to the fore the many opportunities for investors beyond the conventional investment propositions while boosting confidence in the Nigerian capital market. Olugbenjo said: “Nigeria, like most African countries, is bedevilled with infrastructural deficits and for a nation striving to achieve development, closing the gap requires three trillion dollars in investments over the next 30 years. This highlights the need for urgent and concerted efforts at solving this problem. Also, the current challenges plaguing government’s earnings have restrained its efforts at solving some of these problems, thus the need for involvement of financial institutions.”
Shedding more light on the rationale for setting up the Fund, he stated: “The Stanbic IBTC Infrastructure Fund is tailored at addressing these challenges by providing infrastructure investments in critical sectors of the economy such as energy, telecommunications, healthcare, water treatment, waste management, communications, and transportation, amongst others.”
Olugbenjo noted that the Fund, which would be released in tranches, will provide an avenue for investors to gain exposure to critical infrastructure projects.
“The fund, which will be released in tranches and has a 10-year term (with a possible extension of 2-years), provides the governance framework to ensure that investors are kept aware of the investments and is geared at addressing investors’ appetite for infrastructure-dedicated funds,” he said. Olugbenjo stated that Stanbic IBTC Asset Management, with over two decades of deep investment management experience, has been at the forefront of spearheading Nigeria’s infrastructural development in the country by providing innovative investment solutions.
“As one of Nigeria’s leading investment managers, providing world-class solutions and prioritising collaboration for the utmost benefit of our clients have remained core objectives of Stanbic IBTC Asset Management. We have been undertaking this task within the ambit of existing regulations. We will continue to seek ways to optimally leverage our strengths and capabilities for the benefit of our clients. Stanbic IBTC Asset Management has 16 collective investment schemes, which is the highest pool managed by any Securities and Exchange Commission (SEC) registered fund manager in Nigeria. Stanbic IBTC Asset Management’s suite of funds provides diverse options for investors with different risk appetites, and these products are also suitable for different market conditions, allowing investors to rotate between strategies, depending on the market outlook freely,” he added.
Stanbic IBTC Asset Management Limited is Nigeria’s leading investment manager with a total asset under management (AuM) of over N780 billion, spread across high net-worth individuals and institutional investors. Investors interested in the Infrastructure Fund can contact Stanbic IBTC via email at assetmanagement@stanbicibtc.com.
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