SEC Approves AVA Global Asset Managers’ N200bn Infrastructure Fund

Quoted Company's Shareholders Fume At SEC, Here's Why

The Securities and Exchange Commission (SEC) has granted approval for AVA Global Asset Managers Limited’s N200 billion Infrastructure Fund. In a statement released on Sunday, the firm announced that the Series I issuance of the fund, launched on January 29, 2024, is scheduled to conclude on March 6, 2024.

The fund aims to address Nigeria’s infrastructure deficits by strategically directing institutional capital into various infrastructure projects. It is specifically designed to support innovative ventures across sectors such as power, telecommunications, agribusiness, gas distribution, processing, storage, and supporting infrastructure.

“The fund’s primary objective is to provide consistent and reliable income to unit holders through debt financing for infrastructure projects in Nigeria. It seeks to prioritize projects or businesses that offer essential economic and social services, demonstrate stable cash flows, and utilize long-term assets,” the statement highlighted.

Mr. Efe Shaire, the Managing Director of AVA Global Asset Managers Limited, emphasized that the fund intends to strategically deploy private credit toward impactful projects with resilient and predictable future cash flows.

AVA Global Asset Managers projected that the fund would achieve a gross return on its portfolio three to five percent higher than the yield of comparable FGN bonds with a similar tenor.

“The program will be offered periodically to investors in series or tranches, in line with the pipeline of opportunities and the required investment size. The specifics of each series/tranche, including its tenor, will be determined by the fund manager, ensuring alignment with the program’s overall objectives,” the firm added.

The fast-growing asset management firm, recognized for its portfolio management, investment advisory, and innovative asset management services, stated that the SEC has registered and approved the fund as a closed-end, naira-denominated unit trust scheme.

Key parties involved in the transaction include AVA Global Asset Managers (fund manager), STL Trustees (trustee), Olaniwun Ajayi LP (solicitors), United Bank for Africa (custodian), Cordos Registrars (registrars), Ernst & Young (independent infrastructure advisor), and AVA Capital Partners (issuing house).

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