About Infrastructure Bank
The Infrastructure Bank PLC (formerly known as Urban Development Bank of Nigeria Plc) was established in 1992 under Decree 51, as Urban Development Bank Ltd. with the mandate to foster the rapid development of infrastructure across the country. The Bank is a private sector-led, but Government sponsored Development Finance Institution (DFI), with an ownership structure comprising: the three tiers of Government (Federal, State and Local Governments), the Nigeria Labour Congress, and the Private Sector block with 69%.
As such, TIB is able to effectively deliver the necessary social, institutional and regulatory framework support needed for infrastructure development, while the Private sector provides management, technical and operational expertise cum efficiency, crucial to navigating the stormy waters of infrastructure development in an emerging economy such as Nigeria. In line with its establishing Act, the Bank has the mandate to raise and manage funds for infrastructure development projects in the country. Thus, the Bank provides custom-made financial solutions to projects in its focus sectors namely: Transportation, Power & Renewable Energy, Mass Housing and District Development, and Urban Infrastructure and Municipal Finance projects. The Bank also lends its expertise to contribute to discourse on development strategy, with associated policy formulation and guidelines.
Our Financing Solutions
The Infrastructure Bank Plc is a provider of bespoke financial solutions that are tailor-suited to the needs of the Nigerian infrastructure market and are further adapted to the dynamics of the projects in which the Bank is involved. Working with development partners which include: Federal and state government Ministries, Departments and Agencies (MDAs), other Multilateral DFIs, Deposit Money Banks (DMBs), Private Equity and Pension Funds, regulatory agencies and other stakeholders, the Bank provides its portfolio of financial solutions for the development of a diverse array of projects. The Bank’s solutions include:
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Project Finance Advisory and Arranging |
We offer bespoke transaction advisory services to Clients to assist in the preparation of projects, prior to arranging funds required from both local and offshore sources. From project inception through implementation, the Bank acts as an Advisor, Project Manager and Finance Arranger, assisting the Client to structure the transaction in a manner that is financially and economically viable towards ensuring that the project attracts the appropriate temperament of funds required to ensure successful implementation. |
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Development Loans |
The Bank provides price-competitive development loans to commercially viable projects that have significant developmental impact. These medium to long term tenors loans are provided, in accordance with the Bank’s mandate, to support the infrastructure services delivery in our target sectors. |
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Proprietary Equity |
The Bank has developed equity and quasi-equity (mezzanine financing) investment products for projects that require risk capital as a form of catalytic funding, with the Bank taking the lead in such projects. These proprietary investments are critical to providing comfort to and securing the participation of other Development Finance Institutions as well as commercial banks, involved in long term capital provision for infrastructure projects. |
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Fund Management |
The Bank offers fund management services to both domestic and external sovereignties and institutions seeking to fund infrastructure development including; the Federal Government of Nigeria, Pension Funds, Finance Institutions as well as bilateral and multilateral funds providers. |
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Capacity Building and Technical Assistance Project Preparation Fund |
The Bank collaborates with other multilateral agencies and DFIs to promote, organize and deliver technical assistance and capacity building programs as part of efforts to bridge the knowledge gap towards maximizing the developmental impact of the Bank's financial interventions. The Bank is currently leading the establishment of a Project Preparation Fund which shall commence with US$10million from investors, including the Bank. The fund will be accessed by project developers and sponsors to fund the development of projects from concept phase to the bankability stage. |
Our Project Pipeline
The Bank is involved in diverse array of projects across the aforementioned focus sectors, in which the Bank is acting in the capacity of Transaction Advisor, Finance Arranger, Co-Sponsor, Private Equity Investor, Fund Manager, etc. Our flagship projects includes:
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Project |
Description |
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Lagos Metro Rail Transit (Redline) Project |
Deal Size: US$2.4billion Sector: Transportation (Metro Rail) Thesis: The Infrastructure Bank PLC is the lead member of the Consortium that emerged ‘Preferred Bidder’ for the development of the Redline Lagos Metro Rail Transit measuring about 30km, originating from the Marina (heart of the Lagos Metropolis) and terminates at Agbado (Ogun State), with a spur of about 7km long from the Ikeja Station connecting the two domestic terminals and the International terminal of the Murtala Muhammed Airport, Lagos on a Design, Build, Finance, Operate and Transfer (DFBOT) arrangement granted by the Lagos Metropolitan Transport Authority (LAMATA) to the Marina Express Train Services Limited (METSL) backed by The Infrastructure Bank PLC (TIB) and other reputable organizations (financial, technical and legal). The project is being developed under a US$2.3billion capital expenditure program. Current Status: Equity has been raised and procurement process for key contractual parties ongoing. |
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Abuja to Ibadan Expressway Project |
Deal Size: US$4.86billion (Phase 1 – US$970million) Sector: Transportation (Highways and Bridges) Thesis: Acting in the capacity of the Project Developer and Lead member of Consortium, the Bank is sponsoring a Consortium to develop a greenfield 434km Transit Corridor (including a greenfield dual carriage expressway), connecting the Federal Capital Territory (FCT) to Ibadan on the Lagos-Ibadan Expressway, on a Design, Build, Finance, Build, Operate and Maintain (DBFOM) basis. The project is estimated to cost more than US$1.5billion. Current Status: Risk capital has been raised from investors, prefeasibility study has been completed, and Project Outline Business Case has been approved by the Federal Government of Nigeria via the Infrastructure Concession Regulatory Commission (ICRC). |
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Lagos-Ibadan Expressway Project |
Deal Size: US$1billion Sector: Transportation (Highways and Bridges) Thesis: The Infrastructure Bank PLC is the Transaction Advisor and Finance Arranger for the US$1billion rehabilitation, reconstruction and expansion of the Lagos-Ibadan Expressway project working with the Federal Ministry of Power, Works, and Housing under a novel Private Finance Initiative. Tasks successfully delivered include obtaining the Outline and Full Business Case compliance certificates from the Infrastructure Concession and Regulatory Commission; securing a No-Objection Certificate from the Bureau of Public Procurement for the appointment of the two construction companies on the road project as well as other advisors; securing Federal Executive Council approvals for the project transaction structure, adroit credit enhancements for the project, and key appointments of parties; creating a Special Purpose Vehicle for the project which created a nexus between the financing and tolling, operation and maintenance phase of the project; and achieving financial closure and disbursement on the first tranche of US$300million to the project. Current Status: Closed Tranche 1 financing of N50billion. Finance arranging for second tranche of more than US$700m is ongoing |
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Aerotropolis Project |
Deal Size: US$790million Sector: Transportation (Aviation) Thesis: The Infrastructure Bank PLC is leading a consortium as the Transaction Advisor to the Federal Ministry of Transport for the development of an Aerotropolis (Airport City) via a public private partnership (PPP) transaction structure. The project is on-going, and TIB is mandated to provide Transaction Advisory Services to include Review of technical, financial, legal and economic aspects of the Project; assisting the Client to produce a Project Information Memorandum which shall include a Project Base Case Financial Model, Economic Viability Report, Financial Viability Report, Technical Feasibility Report and Legal Opinion/Report; and Project Management Services. Current Status: Viability studies and bankability are currently being carried out |
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Cargo/Agro-Allied Project |
Deal Size: US$19million (Phase 1 only) Sector: Transportation (Aviation) Thesis: Acting in capacity as lead member of a multidisciplinary consortium appointed as Transaction Advisor, the Bank and its associated consultants are assisting the Federal Ministry Transportation to develop Cargo/ Agro allied terminals via a PPP transaction structure. The project is on-going, and TIB and consortium members are mandated to provide Transaction Advisory Services to include Review of technical, financial, legal and economic aspects of the Project; assisting the Client to produce a Project Information Memorandum which shall include a Project Base Case Financial Model, Economic Viability Report, Financial Viability Report, Technical Feasibility Report and Legal Opinion/Report; and Project Management Services. Current Status: Viability and bankability studies are currently being carried out |
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Rail Modernisation Programme |
Deal Size: (Not Applicable) Sector: Transportation (Railways) Thesis: The Infrastructure Bank PLC was part of a committee constituted by the Federal Ministry of Transportation (FMT), invited to evaluate submissions of Financial and Technical proposals from three (3) companies including General Electric Company (GE) who was selected as the preferred supplier following response to a Request for Proposal (RFP) for sixty (60) new locomotives, and kits for the modernization of forty (40) in-fleet locomotives. The Bank further, at the behest of the Federal Ministry of Finance, and FMT presented its proposal for the pragmatic solution for the expeditious, sustainable revitalization and turnaround of the Nigerian rail transport system based on appropriately structured Public-Private Partnership (PPP) project financing arrangements involving the use of private sector resources to complement Government’s budgetary provision. Current Status: Advisory mandate completed. Physical implementation ongoing. |
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Mass Transit Fund Scheme |
Deal Size: Sector: Transportation (Mass Transit and Logistics) Thesis: The Infrastructure Bank PLC is the Fund Manager to the ongoing Move Nigeria Scheme of the FGN, a Current Status: Commencing in 2012 with 658 Vehicles released to beneficiaries around the country, the number of Vehicles released till date is 4,257. |
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Renewable Energy and Energy Efficient Projects |
Deal Size: US$1billion Sector: Renewable Energy Thesis: The Infrastructure Bank PLC is the Transaction Advisor and Finance Arranger to the US$1billion Renewable Energy and Energy Efficient project (REEEP) for the development of 500MW power plants across the nineteen (19) northern States of the federation. The National Energy Council is the implementing agency and coordinator of the project on behalf of the Federal Government of Nigeria. Current Status: Ongoing. |
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Warri-Effurun Water Supply Project |
Deal Size: N12.652billion (US$35million) Sector: Water Thesis: The Infrastructure Bank PLC is the Transaction Advisor and Finance Arranger to a project developer collaborating with the Delta State Government to implement a turnkey potable water and reticulation supply system for the city of Warri (Delta), under an adroit PPP methodology, under which the developer shall undertake the design, finance, build, operate and maintain the water treatment plants, reticulation networks, billings and collection systems, over the term of a concession period. Current Status: The concession agreement has been executed between the State Government and project developer and capital raising is ongoing. |
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Other Urban Water Supply Projects |
Deal Size: US$1.3billion (Lagos) & US$450million (Enugu) Sector: Water Thesis: The Infrastructure Bank PLC is the Transaction Advisor and Finance Arranger to a project developer collaborating with Lagos and Enugu State Governments to implement water reticulation projects for the cities of Lagos and Enugu, under an adroit PPP methodology, under which the developer shall undertake the design, finance, build, operate and maintain water reticulation networks, as well as billing and collection systems, over the term of a concession period. Current Status: The project capital raising is ongoing. |
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National Trade and International Business Centre Project |
Deal Size: US$400million Sector: Real Estate Thesis: The Infrastructure Bank PLC is the Transaction Advisor to the Tafawa Balewa Square Management Board under the Federal Ministry of Industry, Trade and Investment, for the redevelopment of the Independence Building into a National Trade and International Business Centre under a Design, Finance, Build, Operate and Maintain concession methodology. Current Status: Further to the conclusion of prefeasibility and bankability studies, ICRC has approved the Outline Business Case report and procurement of the core investor/ concessionaire is ongoing |
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Federal Ministry of Finance Loan Programme with CHINA-EXIM Bank |
Deal Size: US$2.5billion Sector: Financial Advisory Thesis: The Infrastructure Bank PLC was the Financial Advisor to the Federal Ministry of Finance on the US$2.5billion CHINA-EXIM facility for the development of infrastructure across Nigeria. The three shortlisted project for implementation were the railway modernization project, Galaxy Backbone project, and NIGCOMSAT project. US$500million has been accessed from the line of credit to develop infrastructure in Nigeria. Current Status: Completed. |
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Upgrading and Expansion of Ngurore International Cattle Market |
Deal Size: Sector: Municipal infrastructure Thesis: Financing, Upgrading and Expansion of Ngurore International Cattle Market in Yola South Local Government of Adamawa State. The Ngurore International Cattle Market is a weekly market for livestock including cattle, goats, sheep etc. brought from Adamawa and neighbouring states as well as other countries namely Cameroon and Chad. Prior to TIB’s intervention, the market lacked essential facilities such as water, electricity and toilets, while the access roads to the market were in a deplorable state. Current Status: Completed. |
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Reconstruction of Iyana Ipaja Motor Garage, Lagos |
Deal Size: Sector: Municipal infrastructure Thesis: Financing and reconstruction of the Iyana Ipaja Motor Garage in Alimosho Local Government Area of Lagos State. The Project was executed under a Contractor Finance arrangement between Alimosho Local Government Council (ALGC), the owners of the garage and a private sector proponent. The Project was executed under a Contractor Finance arrangement between Alimosho Local Government Council (ALGC), the owners of the garage and the private sector proponent. Current Status: Completed. |
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Offshore Supply Base Project |
Deal Size: US$500million Sector: Oil and Gas Services Thesis: The Bank is the Transaction Advisor and Finance Arranger to a private development for the development of a Logistic, Fabrication & Marine Service Supply Base (LFMSB), also known as an Offshore Supply Base Project, to be situated on Ogogoro Island, which would incorporate four Strategic Business Units (SBUs) viz: Fabrication & Integration works; Offshore Deepwater Logistic Supply Base; Marine Services for Oil and LNG operators; and Training Centre for the Oil & Gas Industry on an area of land measuring about 51.5 hectares (expandable up to 90 hectares). Current Status: Revalidation of viability and bankability studies is ongoing |
