ARM, Harith, others partner for W’Africa’s infrastructure development
LEADING indigenously-managed Nigerian financial services firm, Asset & Resource Management Company Ltd (ARM) and South African-based fund managers, Harith General Partners (Pty) Ltd (Harith) have restated their commitment to provide much needed long term equity capital for funding infrastructure in Nigeria and West Africa.
This they intend to do through their joint venture initiative, ARM-Harith Infrastructure Investment Ltd (ARMHIIL) which recently announced first close of the indigenously developed and managed ARM-Harith Infrastructure Fund (ARMHIF).
A pioneering US$250 million closed-ended specialist PE Infrastructure Fund, ARMHIF is structured in line with international best practice and core investment focus is on Transportation, Energy, and Utilities in West Africa, and primarily Nigeria. The Fund Management Team comprises multidisciplinary professionals with over 70 years combined experience in development, structuring, financing, and execution of infrastructure projects in Sub-Saharan Africa and other parts of the world.
Currently, total commitments to the Fund are put at around US$91 million. ARM, the lead sponsor and main investor in ARMHIF, committed US$25 million to the Fund. Harith, the co-sponsor, together with investors from its pool, committed a matching US$25 million. The African Development Bank (AfDB), playing a key role as catalyst for investment by the limited partners in the Fund, committed US$20 million. Nigerian Pension Funds, Chevron CPFA, Progress Trust CPFA, and Total E&P CPFA, also made commitments to the Fund, which we understand are the first infrastructure investments made by Nigerian Pension Funds via the private equity route. The Fund also raised commitments from commercial investors, HNIs, and the Fund Management Team.
ARMHIF has already subscribed for an equity stake in its first project investment, the pioneering AzuraEdo IPP, a US$890 million 450MW gas-fired open cycle power generation plant being developed on the outskirts of Benin City in Edo State, Nigeria. The project is the first of a new wave of project-financed greenfield IPPs being developed in Nigeria. Phase 1 of the plant is targeted to come on stream in 2017, and forecast to create over 1,000 jobs during construction and operation.
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