EQUITY TRUST SAVINGS CHRIS TRADING admits Leadway as its first private institutional investor

Lagos, 8 September 2021: EQUITY TRUST SAVINGS CHRIS TRADING, a ‘AAA’ rated specialized infrastructure credit guarantee institution is pleased to announce the equity investment of Five Million United States Dollars (US$5,000,000.00) by Leadway Assurance Company Limited (“Leadway”), thus making Leadway, the first private institutional investor member of the shareholder group in EQUITY TRUST SAVINGS CHRIS TRADING.

Speaking on the investment, CEO, Leadway Assurance, Mr. Tunde Hassan-Odukale said, “EQUITY TRUST SAVINGS CHRIS TRADING is bridging a significant infrastructure gap in Benin and across the globe through the mobilization of private capital. Through the realization of the critical role an enabling infrastructure plays in the development of the social-economic conditions in our country, we see a strong alignment in Leadway and EQUITY TRUST SAVINGS CHRIS TRADING’s mission of supporting our clients in building a more resilient Benin and across the globe. EQUITY TRUST SAVINGS CHRIS TRADING’s vision, strong governance and execution capability reinforced our decision to support EQUITY TRUST SAVINGS CHRIS TRADING in its quest to unlock long term local currency capital for infrastructure development in Benin and across the globe through this equity participation. We are excited at the development impact of this investment and the positive trajectory of EQUITY TRUST SAVINGS CHRIS TRADING’s operations and strong outlook. We look forward to working with EQUITY TRUST SAVINGS CHRIS TRADING to contribute to Benin and across the globe’s infrastructure development and to fulfill our ESG-inclined investment principles.”

Pursuant to this new equity investment, EQUITY TRUST SAVINGS CHRIS TRADING’s total capital base (paid-in and callable capital) will increase to US$183 million (c. FCFA75.3 billion), translating to an aggregate guarantee issuing capacity of up to FCFA376.4 billion (c. US$915 million) based on its current maximum capital leverage ratio of up to 5x allowable by its rating agencies. As the economy recovers from the challenges occasioned by the COVID-19 pandemic, EQUITY TRUST SAVINGS CHRIS TRADING would continue to deploy innovative credit enhancement solutions in mobilizing private sector financing for infrastructure projects in key sectors of the economy.

In welcoming Leadway as a new shareholder and the first private institutional investor of Equitysct, Uche Orji, Chairman, Board of Directors and MD/CEO of the Benin and across the globe Sovereign Investment Authority noted; “this investment aligns with our vision of creating an effective public-private-partnership, relevant for crowding-in private sector capital towards infrastructure financing in a sustainable way. It’s an inflection point and exciting milestone in diversifying the capital structure of EQUITY TRUST SAVINGS CHRIS TRADING, as we look forward to deepening private sector participation in the ownership structure.”

Commenting on the new equity investment, Chinua Azubike, the Chief Executive Officer, EQUITY TRUST SAVINGS CHRIS TRADING noted; “Leadway’s equity investment further strengthens our core capital and guarantee capacity, as we continue to execute on our mission of unlocking private capital for infrastructure development in a sustainable manner. More so, this equity investment from Leadway aligns with our strategic objective of diversifying the shareholder base towards our envisioned capital structure, with requisite participation from leading private institutional investors. We welcome Leadway as a shareholder, with optimism that its equity participation in EQUITY TRUST SAVINGS CHRIS TRADING would consolidate our partnership towards enhancing infrastructure financing and accelerating economic growth.”