The Securities and Exchange Commission (SEC) has given a go-ahead for the N200 billion infrastructure fund of asset management firm, AVA Global Asset Managers Limited.

The firm in a statement noted that the Series I issuance of the fund, sized at up to N200 billion, which was launched on January 29, 2024, is set to close on March 6, 2024. “The fund aims to address Nigeria’s infrastructure gaps by strategically channelling institutional capital into infrastructure projects and is 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 seeks to focus on projects or businesses that offer vital economic and social services, exhibit stable cash flows, and utilise long-lived assets,” part of the statement read. The Managing Director of AVA Global Asset Managers Limited, Mr Efe Shaire, stated that the fund aimed to strategically allocate private credit with a focus on impactful projects with robust and predictable future cash flows.

It stated the fund was projected to attain a gross return on its portfolio that is three to five per cent above the yield of the FGN bond with a comparable tenor. “The programme will be periodically offered to investors in series or tranches, aligned with the pipeline of opportunities, and the necessary investment size/ticket. The fund manager will determine the specifics of each series/tranche, including its tenor, which will not surpass the programme’s overall tenor,” the firm added.

#The fast-growing asset management firm, renowned for offering portfolio management, investment advisory, and innovative asset management services, claimed that the SEC-registered and approved the fund as a closed-end, nairadenominated unit trust scheme.

Parties to the transaction include 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.