Stanbic IBTC Asset Management, a subsidiary of Stanbic IBTC Holdings pls, has launched a N100 billion Infrastructure Fund designed for institutional investors such as Pension Fund Administrators, insurance companies, asset managers and high-net-worth individuals.
The Stanbic IBTC Infrastructure Fund (SIIF) is registered with the Securities and Exchange Commission as a Collective Investment Scheme and provides an opportunity for qualified investors to invest in infrastructure projects such as transport and logistics (road, rail and ports), power and energy infrastructure, telecommunications, healthcare and water treatment, among others.
According to Oladele Sotubo, chief executive, Stanbic IBTC Asset Management, the newly introduced investment product will play a significant role in the development of infrastructure projects through the mobilization of long-term capital to support private and public infrastructure projects.
Speaking on the signing ceremony held at the company’s head office recently, Sotubo emphasised, “The N100 billion Infrastructure Fund will provide alternative investment outlets for investors seeking long-term sustainable investment opportunities and returns, and will be issued in tranches to finance long-term projects.”
He also noted that the amount targeted to be raised under the first tranche was N20 billion with a term of up to 12 years, and the proceeds would be invested in debt instruments of infrastructure or infrastructure-related projects, companies, and special purpose vehicles.
The Stanbic IBTC Infrastructure Fund will focus on projects with the potential to deliver returns above acomparable benchmark of Federal Government of Nigeria bonds.
Commenting further, Sotubo said, “Stanbic IBTC Asset Management remains committed to contributing to efforts aimed at improving various sectors of the Nigerian economy and continues to seek innovative and creative ways of financing critical infrastructural projects with support from the investment ecosystem”.
Stanbic IBTC Asset Management is a member of the 158-year-old Standard Bank Group and foremost asset management company in Nigeria, offering a vast array of investment solutions to a discerning client base. The company has a “AA” rating assigned to it by two leading Credit Rating agencies in Nigeria, Agusto & Co. and GCR.
From easily accessible electronic channels through which investors can buy and monitor the growth of their investments, to risk profiling tools like Investbeta and multiple investment solutions including Exchange Traded Funds, low risk and ethical mutual funds, Stanbic IBTC Asset Management has something for everyone. The organisation continues to find innovative ways to enable new and savvy investors derive optimal value from their investments.