Stanbic IBTC Asset Management Limited, a subsidiary of Stanbic IBTC Holdings Plc has stated that its N100 billion Infrastructure Fund will provide an avenue for investors to gain exposure to critical infrastructure projects while ensuring that risks are mitigated with commensurate returns for the assumed risks.
Chief Investment Officer, Stanbic IBTC Infrastructure Fund, Dolu Olugbenjo, at a webinar on Tuesday, stated that the fund would help Nigeria to close its infrastructure gap by linking investors with long-term capital while enabling them to achieve their investment goals.
He pointed out that the fund would support efforts to close the infrastructure gap by linking investors with long-term capital to infrastructure project developers and sponsors. The fund will provide long term capital to project sponsors and ensure that the investment terms enable development of projects, rather than stifling them.
Olugbenjo said Nigeria, like most African countries, struggles with infrastructural deficits and for a nation striving to achieve development, closing this gap requires around $3 trillion investment over the next 30 years.
According to him, this highlights the need for urgent and concerted efforts at solving this problem. In addition, he argued that the current challenges plaguing government’s earnings have restrained its efforts at solving some of these problems, thus creating a further need for the involvement of financial organisations
Therefore, he stressed that the fund is tailored at addressing these challenges by providing infrastructural investment in critical sectors of the economy such as energy, telecommunications, healthcare, water treatment, waste management, communications, and transportation, among others.
The fund, which will be released in tranches with a 12-year term period, would provide the governance framework to ensure that investors are kept aware of investments. It is geared at addressing investors’ appetite for infrastructure-dedicated funds.
He pointed out that the Asset Management Company, with over two decades of deep investment management experience, has been at the forefront of leading Nigeria’s infrastructural development in the country by providing innovative products.
“As one of Nigeria’s leading investment managers, providing world-class solutions and prioritising collaboration for the utmost benefit of our clients have remained a core objective of Stanbic IBTC Asset Management.
“We have been undertaking this task within the scope of existing regulations, and we will continue to seek ways to optimally leverage our strength and capabilities for the benefit of our clients.”
He added that the company’s array of funds provides diverse options for investors with different risk appetites, and these products are suitable for different market conditions, allowing investors to freely rotate between strategies, depending on the market outlook.