Stanbic IBTC Asset Management Limited, a subsidiary of Stanbic IBTC Holdings Plc, has urged corporate organisations and project developers, among others, to explore its N100 billion infrastructure fund. The Fund, according to Stanbic IBTC, will help Nigeria close its infrastructure gap by linking investors with long-term capital while enabling them to achieve their investment goals.
Dolu Olugbenjo, Chief Investment Officer, Stanbic IBTC Infrastructure Fund, stated during a webinar held recently that the establishment of the Fund was borne out of the need to bring to the fore the many opportunities for investments beyond the traditional investment propositions whilst boosting confidence in the Nigerian capital market.
Dolu said, “Nigeria, like most African countries, struggles with infrastructural deficits and for a nation striving to achieve development, closing this gap requires around $3 trillion investment over the next 30 years. This highlights the need for urgent and concerted efforts at solving this problem. In addition, the current challenges plaguing government’s earnings have restrained its efforts at solving some of these problems, thus creating a further need for the involvement of financial organisations.”
Shedding more light on the rationale for setting up the Fund, he stated, “The Stanbic IBTC Infrastructure Fund is tailored at addressing these challenges by providing infrastructural investment in critical sectors of the economy such as energy, telecommunications, healthcare, water treatment, waste management, communications, and transportation, among others.”
Olugbenjo noted that the Fund, which will be released in tranches, will provide an avenue for investors to gain exposure to critical infrastructure projects while ensuring that risks are mitigated. There are commensurate returns for the risks assumed, he assured.
“The Fund, which will be released in tranches and has a 12-year term period, provides the governance framework to ensure that investors are kept aware of investments. It is geared at addressing investors’ appetite for infrastructure-dedicated funds”.
Dolu stated that Stanbic IBTC Asset Management, with over two decades of deep investment management experience, has been at the forefront of leading Nigeria’s infrastructural development in the country by providing innovative products.
“As one of Nigeria’s leading investment managers, providing world-class solutions and prioritising collaboration for the utmost benefit of our clients have remained a core objective of Stanbic IBTC Asset Management. We have been undertaking this task within the scope of existing regulations, and we will continue to seek ways to optimally leverage our strength and capabilities for the benefit of our clients.”
Stanbic IBTC Asset Management has 16 collective investment schemes, which is the highest pool managed by any Securities and Exchange Commission (SEC)-registered fund manager in Nigeria. “Our suite of funds provides diverse options for investors with different risk appetites, and these products are suitable for different market conditions, allowing investors to freely rotate between strategies, depending on the market outlook”.
Stanbic IBTC Asset Management is one of Nigeria’s leading investment managers with a total Asset Under Management (AUM) of over N780 billion, spread across individual and institutional investors.