ARM - Harith Infrastructure Investment Limited (ARMHIIL) has announced first close of its closed-ended specialist private equity infrastructure fund ARM-Harith Infrastructure Fund (ARMHIF).
ARMHIIL is a joint between Asset and Resource Management Company Limited (ARM), a Nigerian non-bank financial services company, and Harith General Partners of South Africa, an experienced infrastructure investment manager on the continent.
ARMHIF has raised a total commitments of US$91 million in its first close.
ARM, the lead sponsor and main investor in ARMHIF, has committed US$25 million. Harith, the fund's co-sponsor, together with investors from its pool, have committed US$25 million. The African Development Bank (AfDB) has provided US$20 million and the remaining US$21 million have been provided by a number of local investors, including Nigerian pension funds like Chevron CPFA, Progress Trust CPFA, and Total E&P CPFA.
The fund expects to raise US$250 million to invest in transport, energy and utilities in West Africa, and primarily Nigeria. It has already make its first investment a stake in the pioneering Azura-Edo IPP, a US$890 million 450 MW gas-fired open cycle power generation plant being developed on the outskirts of Benin City in Edo State, Nigeria.
Opuiyo Oforiokuma, Managing Director and CEO of ARM-HARITH Infrastructure Investment Ltd (ARMHIIL), stated:
"ARMHIF is the first in a series of Infrastructure Funds that we plan to raise over time, providing much needed long-term equity capital for funding infrastructure in Nigeria and West Africa. We see viable investment opportunities in our pipeline, and believe good returns can be generated through our selective and skillful deployment of capital to infrastructure projects. ARMHIF is a new and investible infrastructure product for Sub-Saharan Africa, and is suitable for local and international investors alike. Having a AAA-rated international organization like the AfDB in our investor group, and Nigerian Pension Funds gaining infrastructure exposure for the first time via our Fund, is a solid start."
"The first close of ARMHIF is a critical milestone that takes us closer to realizing our objective of investing in infrastructure assets and ensuring that our communities have improved access to services. ARMIF's investments will be long-term in nature and investors will be offered stable yet attractive returns within a well-managed low-risk portfolio. Infrastructure investment is a good catalyst for economic stimulus through the delivery of carefully-chosen and structured projects."