GuarantCo, a member of the Private Infrastructure Development Group (PIDG), has recently stepped forward with a significant move in the realm of infrastructure development in Nigeria. In a press release shared with Infostride News, GuarantCo announced the provision of a substantial N20.23 billion (USD 25 million) counter-guarantee to the Lagos Free Zone Company (LFZC), showcasing a commitment to advancing crucial economic initiatives in the country.
This strategic counter-guarantee, which spans a twenty-year tenor, is integral to supporting LFZC’s ambitious three-phase infrastructure bond issuances, collectively valued at N53 billion (USD 65.5 million). The broader guarantee facility, underpinned by Infrastructure Credit Guarantee Company Limited (InfraCredit) Nigeria, amplifies the financial backing for LFZC’s comprehensive bond program, underscoring the collaborative efforts driving pivotal developments in Nigeria’s economic landscape.
The primary objective of this financial arrangement is to facilitate the continued expansion and enhancement of the Lagos Free Zone (the Zone), a project positioned as the largest integrated port-based economic zone in Nigeria. With a vision to evolve into a robust industrial and maritime hub for Nigeria and West Africa, the Zone’s strategic importance is underscored by the infusion of substantial funds through these bond issuances.

Leveraging the financial support garnered from these bonds, the Lagos Free Zone is poised to fuel its ongoing development initiatives. This includes the creation of vital infrastructure to propel economic activities within the Zone, contributing significantly to the broader economic goals of Nigeria and the West African region.
Expressing his sentiments on the transaction, Ashish Khemka, Chief Finance Officer of Lagos Free Zone, emphasized the value of the collaboration with GuarantCo and InfraCredit. He highlighted their shared commitment to driving transformative infrastructure projects in emerging markets like Nigeria. Khemka acknowledged the pivotal role played by credit guarantee programs run by GuarantCo and InfraCredit in facilitating access to long-term credit, a prerequisite for ambitious projects such as those undertaken by the Lagos Free Zone.
Layth Al-Falaki, CEO of GuarantCo, expressed delight in being part of the bond issuance of Lagos Free Zone Company, emphasizing the positive impact on the Nigerian and West African economies. Al-Falaki noted that this transaction marked a significant milestone as GuarantCo’s first joint endeavor with InfraCredit, an institution established in 2017 with the support of GuarantCo and the Nigerian Sovereign Investment Authority. He also highlighted the progress made by InfraCredit Nigeria over the past six years and positioned this joint transaction as a crucial step forward for GuarantCo’s engagement with other local Credit Enhancement Facilities.
In a similar vein, Chinua Azubike, CEO of InfraCredit, shared insights into their strategy to address Nigeria’s infrastructure financing deficit. Azubike emphasized the importance of expanding guarantee capacity through risk-sharing partnerships with development finance institutions. The Counter-Guarantee provided by GuarantCo for the Lagos Free Zone Company, according to Azubike, strengthens InfraCredit’s ability to underwrite larger infrastructure projects. This, in turn, enables the mobilization of domestic credit from local institutional investors, fostering impactful infrastructure development that creates jobs and propels economic growth.
The collaboration between GuarantCo, InfraCredit, and the Lagos Free Zone Company is a testament to the synergy achievable through public-private partnerships in advancing transformative projects. As GuarantCo takes a pioneering step in supporting the ambitious vision of the Lagos Free Zone, the ripple effect extends beyond infrastructure development to encompass economic growth, job creation, and the establishment of Nigeria as a key player in the West African economic landscape.
In conclusion, this financial initiative marks a significant stride towards bridging the infrastructure financing gap in Nigeria. As GuarantCo, InfraCredit, and the Lagos Free Zone Company align their efforts, the stage is set for a paradigm shift in the ease of doing business in Nigeria, with a ripple effect on the broader economic ecosystem of the region.
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