- Manufacturing, telcos, powers, agric, others to benefit
The successful launch of the N200 billion AVA Infrastructure Fund will channel amenable capital to development of infrastructure across key sectors of the Nigerian economy as part of private sector’s efforts at bridging the country’s infrastructure gap.
AVA Global Asset Managers Limited at the weekend commemorated the listing of the first tranche of issuances under its N200 billion infrastructure fund with the ceremonial ringing of closing gong at the Nigerian Exchange.
NGX had listed N4.075 billion AVA Infrastructure Series 1 Fund on its trading platform. A total of 4,075 units were listed on the main board of NGX at N1 million each as a closed-end Fund and naira-denominated unit trust scheme.
Managing Director, AVA Global Asset Managers Limited, Efe Shaire, said the successful launch and listing of the fund marked a pivotal moment as the fund seeks to address Nigeria’s significant infrastructure deficit through strategic and impactful investment.
He said the company remains committed to supporting Nigeria’s socio-economic development.
“This listing is a significant milestone for our organisation as well as a testament to the AVA Capital Group’s collective belief in the promise of Nigeria’s infrastructure development and the impact long-term private sector capital can have in driving productivity gains and sustainable economic growth,” Shaire said.
According to him, AVA Infrastructure Fund opens up new opportunities for collaboration and growth and allows companies to tap into the deep pool of capital available within the Nigerian market while providing investors with access to a well-structured, transparent, and professionally managed investment vehicle focused on infrastructure project financing.
Recent reports, including PwC’s 2024 Economic Outlook, highlight Nigeria’s infrastructure deficit, with the allocated spending of N1.32 trillion falling short of the World Bank’s 70 per cent infrastructure-to-GDP recommendation. Nigeria currently stands at 30 per cent.
“The AVA Infrastructure Fund is designed to bridge that gap by investing in critical sectors essential for economic growth,” Shaire said.
He outlined that the fund seeks to address the infrastructure deficit in Nigeria through provision of institutional capital into suitable projects across Nigeria.
According to him, the beneficiary sectors would include power, telecommunication, gas distribution, storage and processing, transport, urban and social infrastructure, utilities, agribusiness, and supporting infrastructure.
“The overall objective of the fund is to spur socio-economic impact in Nigeria. The AVA Infrastructure Fund is poised to contribute to the growth of Nigeria’s manufacturing sector, which will work together to achieve Nigeria’s diversification objectives while making profits for all investors,” Shaire said.
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He added that the fund would achieve its objectives of providing unit holders with competitive returns on their investment by investing in de-risked infrastructure or infrastructure-related projects in Nigeria.
He explained that aside from investing in the target sectors, the fund will also in invest in senior-debt facilities, securitised debt instruments of infrastructure companies or special purpose vehicles (SPVs) aimed at facilitating the financing of infrastructure projects, preference shares, convertibles, and mezzanine instruments.
He assured that AVA Infrastructure Fund is poised to take advantage of this inherent gap in Nigeria’s infrastructure, which will help improve the infrastructure deficit in Nigeria considering the current infrastructure dearth in the country and the dire need to improve the lives of the citizenry.
According to him, by focusing on sustainable and impactful investments, the infrastructure fund aims to create lasting value for investors while contributing to the nation’s economic growth.
“This fund aligns with the federal government’s objectives of closing the infrastructure gap and driving long-term economic development. The N200 billion Programme underscores AVA’s commitment to playing a central role in the transformation of Nigeria’s infrastructure landscape,” Shaire said.
Chief Executive Officer, Nigerian Exchange (NGX), Mr. Jude Chiemeka, commended AVA Global Asset Managers for its commitment to enhancing the infrastructure sector and increasing investment opportunities.
He said the successful launch of the fund highlighted the impact of strategic investments in fostering economic growth and innovation.
Vice Chairman, AVA Global Asset Managers, Kayode Fadahunsi, assured on the sustainability of the fund.
“We are committed to upholding the highest standards of transparency, governance and sustainability. The AVA Infrastructure Fund will not only seek returns for investors but will ensure that every investment decision is guided by principles that promote environmental stewardship, social responsibility, and economic inclusivity,” Fadahunsi said.