Infostride News Reports: British International Investment (BII), the United Kingdom’s development finance institution (DFI), has officially inked binding agreements to inject $15 million in equity into Valency International, a Singapore-based agricultural commodities trading house. The funds are earmarked for the expansion of processing and warehouse infrastructure in Nigeria, as disclosed in a press statement obtained by Infostride News. The transaction is contingent on regulatory approval and is anticipated to conclude in early 2024.
In addition to the initial $15 million commitment, BII retains the option to invest an additional $35 million in equity into Valency within two years following the completion of its initial investment.
The strategic infusion of funds from BII is set to bolster Valency’s facilities, fostering stronger collaborations with local farmers and processing centers to optimize output and ensure a more stable supply of premium-quality products. This initiative is projected to positively impact at least 60,000 farmers and generate up to 2,800 jobs within low-income communities in Nigeria.
As Valency’s maiden institutional investor, BII is poised to offer value-added support, aiding the company in the development of best practices concerning business integrity and the Environmental and Social Management System (ESMS). Both parties are committed to working closely to enhance job quality, promote gender inclusion, and amplify overall value creation.
In response to this groundbreaking collaboration, Jonny Baxter, the UK Deputy High Commissioner, emphasized the significant role that sustainable agriculture plays in mitigating greenhouse gas emissions, adapting to a changing climate, and bolstering livelihoods. He expressed excitement about the new UK investment contributing to the enhancement of Nigeria’s food processing capabilities, leading to job creation across the nation and continued support for Nigeria’s agriculture sector.
Benson Adenuga, Head of Office and Coverage Director, Nigeria for BII, underscored the strategic opportunity to catalyze growth in Nigeria’s food and agricultural sector, leveraging the country’s substantial food export potential. He expressed pride in deepening BII’s commitment to food security and smallholder farmers in Nigeria, emphasizing the creation of jobs that facilitate industrialization and enhance regional and international trade.
CEO of Valency International, Mr. Sumit Jain, spoke about the meticulous selection of partners for the next phase of growth. Highlighting BII’s engagement in regions where substantial investment is committed over the medium term, Jain expressed the company’s privilege in being chosen by BII to drive its impact agenda in Nigeria’s burgeoning food and agriculture sector.
In a significant development, Roman Frenkel, Head of Food and Agriculture at BII, is slated to join the Board of Valency as part of the transaction, underscoring the collaborative nature of this partnership in fostering sustainable development and economic growth.
Support InfoStride News' Credible Journalism: Only credible journalism can guarantee a fair, accountable and transparent society, including democracy and government. It involves a lot of efforts and money. We need your support. Click here to Donate