The Private Infrastructure Development Group (PIDG) has exited its preference share investment in InfraCredit Nigeria for USD 26 million, achieving a strong return despite challenging macroeconomic conditions.
The transaction, announced on January 28, 2026, was executed through PIDG’s project development arm, InfraCo, and demonstrates the viability of local currency credit enhancement mechanisms in frontier markets.
Established in 2017 in collaboration with the Nigeria Sovereign Investment Authority, InfraCredit serves as the world’s first local currency guarantee facility dedicated to infrastructure in frontier markets.
It issues Naira-denominated guarantees that improve the credit quality of local currency debt instruments used to finance infrastructure projects in Nigeria.
PIDG retains its ordinary shares following InfraCredit’s listing on the NASD OTC Securities Exchange in 2025.
InfraCredit’s Track Record and Market Impact
Since inception, InfraCredit has built a substantial guarantee portfolio, unlocking ₦327 billion (approximately USD 516 million equivalent at issuance) from over 20 institutional investors.
These funds have supported projects across key sectors, including renewable energy, transport, logistics, and telecommunications.
The facility addresses a critical barrier in frontier markets: limited access to long-term local currency financing for infrastructure.
By providing credit enhancement, InfraCredit has attracted domestic institutional capital that might otherwise remain sidelined, promoting greater private sector participation in essential development projects.
The completion of PIDG’s preference share investment marks an important milestone in InfraCredit’s development. PIDG has been a foundational partner since inception, supporting InfraCredit through its early stages as we built the institutional strength and market credibility required to become a publicly listed company and operate at scale.
Chinua Azubike, CEO of InfraCredit
PIDG’s Role and Strategic Recycling of Capital
PIDG played an active investor role, including board representation and assistance in developing InfraCredit’s impact management and health, safety, environment, and social (HSES) frameworks.
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While the preference share exit concludes one phase of involvement, the partnership will continue through future collaborations.
PIDG has demonstrated how to successfully use increasingly scarce capital to unlock domestic institutional finance. InfraCredit’s strong performance serves as a template for how such entities can be built in the future. With this transaction, we can now redeploy our investment for further action on climate and sustainable development in low- and middle-income countries
Philippe Valahu, Chief Executive Officer of PIDG
The USD 26 million proceeds will be redeployed into additional inclusive and sustainable infrastructure initiatives, exemplifying PIDG’s approach to recycling development capital for maximum impact.
Implications for Frontier Markets
This exit signals growing market confidence in domestic credit enhancement structures in frontier economies.
InfraCredit’s maturation from startup to publicly listed entity with strong ratings (including AAA from domestic agencies and high international ratings) illustrates a replicable model for attracting local institutional investors to infrastructure financing.
In frontier markets, where foreign currency debt often predominates and exposes projects to exchange rate risks, local currency solutions like InfraCredit reduce vulnerabilities and encourage longer-term commitments.
The transaction highlights PIDG’s success in catalysing such mechanisms and provides a blueprint for similar initiatives in other emerging economies facing comparable infrastructure funding gaps.
Looking Ahead
PIDG’s USD 26 million exit from its preference shares in InfraCredit Nigeria represents a successful demonstration of catalytic investment in frontier markets infrastructure finance. By achieving strong returns, enabling significant domestic capital mobilisation, and paving the way for capital redeployment into climate and sustainable projects, the transaction validates the effectiveness of targeted credit enhancement facilities. As of February 2, 2026, InfraCredit’s continued growth and PIDG’s ongoing ordinary shareholding affirm the model’s enduring value for low- and middle-income countries. For the most current details, refer to official announcements from PIDG and InfraCredit.
PIDG Overview
PIDG operates a diversified PIDG portfolio of infrastructure investments across Africa and Asia, with active projects under PIDG Kenya spanning energy, transport, housing and climate-resilient infrastructure.
Through PIDG InfraCo (InfraCo Africa and InfraCo Asia), the group develops early-stage projects, while PIDG GuarantCo provides credit guarantees to mobilise private capital.
PIDG owners are a group of public development partners, and the PIDG team is based across hubs such as London and Nairobi.
Professionals interested in blended finance and infrastructure development can explore opportunities via PIDG Careers.
Ronnie Paul is a seasoned writer and analyst with a prolific portfolio of over 1,000 published articles, specialising in fintech, cryptocurrency, climate change, and digital finance at Africa Digest News.
