AVA Global Assets Managers Limited, a fast-growing asset management firm, today announced that it has received approval from the Security and Exchange Commission to launch a N200 billion AVA infrastructure Fund Programme.
The Series 1 fund aims to bridge Nigeria’s infrastructural gaps by strategically challenging institutional capital into infrastructure projects and designed to encourage innovative businesses in sectors such as power, telecommunications, agribusiness and supporting infrastructure, gas distribution, processing and storage.
The fund’s main objective is to deliver consistent and reliable income to unit-holders through debt financing for infrastructure projects in Nigeria. It also seeks to focus on projects or businesses that offer vital economic and social services, exhibit stable cash flows and utilize long-lived assets.
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Efe Shaire, managing director of AVA Global Asset Managers Limited, in a statement, stated that the Fund’s aim is to strategically allocate private capital credit with a focus on impactful projects with robust and predictable future cash flows.
“The fund projects to attain a gross return on its portfolio that is 3 – 5 percent above the yield of the FGN bond with a comparable tenor,” said Shaire.
“The programme will be periodically offered to investors in series or tranches, aligned with the pipeline of opportunities and the necessary investment size/ticket,” he stated, adding that the Fund manager will determine the specifics of each series/tranches, including its tenor, which will not surpass the programme’s overall tenor.
The statement stated that the Security and Exchange Commission (SEC) has registered and approved the fund as a close–end naira denominated unit trust scheme.
The fund has the following transaction parties; AVA Global Asset Managers as the fund manager, STL Trustees as the trustee, Olaniwun Ajayi LP as the solicitors, United Bank for Africa as the custodian, Cordos Registrars as the registrars, Ernst & Young as the independent infrastructure advisor and AVA Capital Partners as its issuing house.
Nigeria needs to spend $3 trillion and five percent of its GDP annually to bridge the infrastructure gap, according to the National Infrastructure Master Plan.
