Posted May 11, 2021 via Bloomberg Markets – The Nigeria Sovereign Investment Authority plans to raise equity this year and sell Sukuk bonds to fund technology and road infrastructure in Africa’s largest economy.
NSIA, one of Africa’s largest sovereign wealth funds, plans to put $ 50 million equity in an innovation fund that will develop the technology infrastructure and sell Sukuk to fund road projects, Uche Orji, chief executive officer, said in an online conference on Tuesday. It will seek co-investors to complement the proposed capital injection into the innovation fund, while the supply of Islamic financial assets “will not be small,” Orji said without mentioning the amount.
The wealth fund’s assets under management increased 51% to 981.9 billion naira ($ 2.4 billion) in 2020 after the government posted a profit increase and additional capital contribution of $ 250 million last year. The profit increased by more than five times from 36 billion naira to 160 billion naira. This is due to the “strong performance” of investments in the international capital markets, the improved contribution of the subsidiaries and the exchange rate gains, according to the fund manager.
The Abuja-based money manager plans to allocate more of its Future Generations Fund to venture capital, global equity markets and equities in Europe, where its exposure has been relatively low, the CEO said. “We believe that general market opening for Europe will be positive.”
There are also opportunities in data centers, data networks, software, pharmaceuticals and manufacturing industries in Nigeria, the chairman said. The capital market is unlikely to repeat its performance in 2020, although it will still be a “strong year,” said CEO.
(Updates throughout with the Chief Executive’s comments)
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