GuarantCo, a subsidiary of the Private Infrastructure Development Group (PIDG), has extended a significant counter-guarantee of N20.23 billion with a twenty-year tenor in support of Lagos Free Zone Company’s three infrastructure bond issuances, totaling N53 billion.
This development is part of a broader guarantee facility facilitated by Infrastructure Credit Guarantee Company Limited Nigeria (InfraCredit) to bolster the bond program.
Owned and developed by Tolaram, Lagos Free Zone Company (LFZC) raised these funds to further advance the Lagos Free Zone (the Zone), envisaged as Nigeria’s largest integrated port-based economic zone.
It is expected to serve as the industrial and maritime hub for Nigeria and West Africa, contributing to economic growth and job creation in the region.
All three bond issuances have received full guarantees from InfraCredit, a Nigerian-based credit guarantor established with support from GuarantCo and the Nigerian Sovereign Authority in 2017.
InfraCo Africa, another PIDG company, is a shareholder in InfraCredit. To manage single obligor limits, InfraCredit and GuarantCo collaborated across all three series.
Ashish Khemka, Chief Finance Officer of Lagos Free Zone, expressed appreciation for the collaboration with GuarantCo and InfraCredit in realizing essential infrastructure projects in emerging markets like Nigeria.
He highlighted LFZC’s commitment to transforming the business environment in Nigeria, making it easier to conduct business and attract investments.
CEO of GuarantCo, Layth Al-Falaki, lauded the partnership’s contribution to the Nigerian and West African economies.
He also commended InfraCredit’s significant progress in the past six years and expressed the company’s intent to engage with other local Credit Enhancement Facilities as part of PIDG’s broader mission to support infrastructure development in emerging markets.
Lagos Free Zone, backed by Singaporean conglomerate Tolaram, is poised to play a pivotal role in regional trade and development by offering policy incentives under the Nigeria Export Processing Zones (NEPZ) Act.
With world-class infrastructure and shared industrial facilities, the Zone aims to attract investments from Nigeria’s leading trade partners. This joint initiative marks an essential step toward achieving that vision.
