Stanbic IBTC Asset Management, a subsidiary of Stanbic IBTC Holdings Plc, has launched an N100 billion infrastructure fund designed for institutional investors such as pension fund administrators, insurance companies, asset managers, and high-net-worth individuals.
It said this in a statement on Sunday titled ‘Stanbic IBTC Asset Management launches N100bn infrastructure fund’.
The statement said Stanbic IBTC Infrastructure Fund was registered with the Securities and Exchange Commission as a Collective Investment Scheme and provided 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.
The Chief Executive, Stanbic IBTC Asset Management, Oladele Sotubo, said the newly introduced investment product would play a significant role in the development of infrastructure projects through the mobilisation of long-term capital to support private and public infrastructure projects.
Speaking on the signing at the company’s head office recently, Sotubo said, “The N100bn 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 N20bn 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 statement said the Stanbic IBTC Infrastructure Fund would focus on projects with the potential to deliver returns above a comparable benchmark of Federal Government of Nigeria bonds.
“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,” Sotubo said.
Stanbic IBTC Asset Management is a member of the 158-year-old Standard Bank Group and a foremost asset management company in Nigeria, according to the statement.