The Infrastructure Bank Plc has raised N50 billion as first tranche of the proposed N167 billion for the rehabilitation of the Lagos-Ibadan dual carriageway, according to Adekunle Oyinloye, managing director of the bank.
Oyinloye said this at the official signing of a Memorandum of Understanding (MoU) with four commercial banks on Monday in Lagos.
The banks are Access Bank, Ecobank, Diamond Bank and Standard Chartered Bank Plc.
He said the N50 billion represented 30 percent of the proposed N167 billion and a successful closure of the tranche for the rehabilitation, reconstruction and expansion of the 127km dual carriageway.
Oyinloye also said that the bank is a leading consortium of local and international financiers and investors that will provide the required funding to complete the project within 24 to 30 months.
He added that the Federal Government had made good its own financial contributions for the execution of the project and equally formalised its engagement of the Infrastructure Bank as the transaction adviser and lead finance arranger for the project.
The managing director urged the banks to be committed to the tranche- two, a balance of N117 billion, for the project.
Oyinloye added that more local and foreign investors had shown interest in the project financing because, he stated, they knew that the Lagos-Ibadan Expressway was the most ‘profitable road’ on the country’s road network.
According to him, funding under the second- tranche will commence in six months.
He also added that the redesigning of the expressway would take cognisance of features such as parks, conveniences and toll-ability which were not considered in previous constructions.
Oyinloye said that the Infrastructure Bank was conscious of the re-designing of the road to ensure that it stood the test of time.
Bola Adesola, the managing director of Standard Chartered Bank Nigeria Limited, described the project as an iconic asset worthy of the banks’ support.
Adesola also explained that the project would strive to showcase the lending partners’ efforts as it would project them to limelight.
In his own remarks, Herbert Wigwe, the managing director of Access Bank, advised more banks to key into the project, saying that banks had always been criticised about not supporting infrastructure projects in Nigeria.
“These four banks coming together on the rehabilitation, reconstruction and expansion of the 127km Lagos-Ibadan dual carriageway are demonstrating greater commitment to arresting the nation’s infrastructure deficit,” he added.
Foluke Aboderin, executive director, group banking, Ecobank Plc, said that that the agreement signing was a major landmark in their nine-month negotiations and congratulated the Infrastructure Bank and the commercial banks for their partnership.
Ehianeta Ebhohimhen, division head, infrastructure and transportation, Diamond Bank, said that “the project would not just bring returns on the capital but also bring back the capital invested.”
