ARM-Harith Achieves US$76 Million First Close for its Climate Transition Fund – Africa’s first integrated multi-currency blended finance vehicle for infrastructure equity

ARM-Harith Infrastructure Investments Limited (“ARM-Harith”), a leading pan-African private equity fund manager focused on sustainable energy and infrastructure investment, has announced the first close of its Successor Fund, a climate transition Fund (the “Fund”) at ~US$76 million equivalent.

The Fund is the first integrated multi-currency blended finance platform purpose-built for African institutional investors, denominated in both US dollars and local currency within a single structure for investment into infrastructure equity. Targeting US$200 million at final close, it is designed to unlock African institutional capital at scale and accelerate investment in energy transition and climate resilient infrastructure across Sub-Saharan Africa.

This structural innovation directly addresses one of the most persistent barriers to African infrastructure investment: the mismatch between hard currency fund structures and the local currency revenues generated by the assets they finance. By integrating a more dynamic currency profile from the outset, the Fund mitigates currency risk at project level and enables greater domestic institutional investors’ participation, particularly pension funds on terms aligned with their own balance sheets and regulatory frameworks, while international and other investors with access to hard currency retain US dollar exposure.

The first close is anchored by a combined US$20 million of catalytic capital from FSD Africa Investments (FSDAi) and the African Development Bank (AfDB) through its Sustainable Energy Fund for Africa (SEFA). This capital is designed to de-risk participation by domestic pension funds and other institutional investors across the continent, supporting the broader ambition of scaling local capital mobilisation for African infrastructure.

The Fund will be deployed into essential infrastructure projects that deliver real-economy impact and resilient cashflows across climate-resilient assets in Sub-Saharan Africa.

Speaking on the milestone, Rachel More-Oshodi, Chief Executive Officer of ARM-Harith, said:

“This first close is both an achievement and an inflection point for ARM-Harith. With our first fund, we demonstrated that domestic institutional capital can be mobilized into infrastructure equity. With this successor fund, we are building on that foundation by bringing local and hard-currency capital together within a single platform — better aligning the structure of the capital with the realities of African infrastructure assets. This is a fundamental redesign: one that recognizes local market realities, mobilizes domestic savings, attracts international capital, and allocates risk more intelligently. The institutions that are backing us understand the significance of this shift. They are not only investing in a fund; they are helping to shape a more practical, scalable way to finance the infrastructure Africa needs.”

Joao Duarte Cunha, Manager of AfDB’s Renewable Energy Funds Division, stated, “The successful first close of the ARM-Harith Successor Fund marks a major milestone for renewable energy investment in sub-Saharan Africa. SEFA’s catalytic participation demonstrates the African Development Bank’s commitment to unlocking long-term institutional capital and shows how blended finance can mobilise private investment into sustainable infrastructure.”

On bridging the gap between pension capital and infrastructure equity, Anne-Marie Chidzero, Chief Investment Officer at FSDAi said: “The constraint has never been capital itself, but the absence of investment products structured to meet pension funds’ liability-matching needs, particularly around tenure, risk allocation, and currency alignment. Our investment structure was designed to bridge that gap – enabling pension funds to participate in infrastructure equity while remaining fully aligned with their investment objectives and obligations.”

Through its predecessor fund, ARM-Harith financed critical transport infrastructure and over 700 MW of installed power capacity, enabling approximately 22,500 jobs and avoiding an estimated 2.6 million tonnes of CO₂ emissions annually. The Successor Fund will build on this momentum, targeting projects that deliver strong commercial performance with measurable climate and development impact, contributing to regional integration and sustainable development across the continent.

About ARM-Harith Infrastructure Investments Limited

ARM-Harith Infrastructure Investments Limited is a leading African infrastructure fund manager with over 80 years of combined investment experience across the continent. The firm specializes in equity investment across energy, transport and logistics, digital, waste and water infrastructure, with a strong focus on sustainability, operational excellence, and long-term value creation. ARM-Harith has been at the forefront of successful mobilization of domestic institutional capital, particularly Nigerian pension funds, into African infrastructure equity for over a decade, and its portfolio has included landmark transactions in power generation and transport.

Website: https://armharith.com/ 

For media enquiries and investor relations, please contact: ARM-Harith Infrastructure Investment Limited [email protected]

This announcement is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities. The ARM-Harith Successor Fund remains strictly restricted to “Qualified Investors” as defined under the Rules and Regulations of the Securities and Exchange Commission (SEC), Nigeria and the Financial Services Commission (FSC), Mauritius. Prospective investors must meet the suitability criteria established by the SEC or the FSC, and investment remains subject to the terms and conditions outlined in the Fund’s authorised transaction documents.

Frequently Asked Questions (FAQ) on Equities in Nigeria

Investing in equities, also known as stocks or shares, can be an effective way to grow your wealth in Nigeria. However, it’s essential to understand the market and its dynamics before making any investment decisions. Here are some frequently asked questions (FAQs) to help you navigate the world of equities investing in Nigeria:

1. What are equities, and how do they work in Nigeria?

Equities represent ownership in a company. When you buy a company’s shares, you become a shareholder and have a stake in the company’s profits and losses. In Nigeria, the Nigerian Stock Exchange (NSE) is the primary platform for trading equities.

2. Why should I consider investing in Nigerian equities?

Investing in Nigerian equities can provide opportunities for capital appreciation and dividend income. It’s a way to participate in the growth of Nigerian companies and the broader economy.

3. How do I get started with equities investing in Nigeria?

To start investing in Nigerian equities, you’ll need to open a brokerage account with a registered stockbroker. This account will allow you to buy and sell shares on the NSE.

4. What are the risks associated with investing in Nigerian equities?

Investing in equities carries inherent risks. The value of your investments can go up or down, depending on market conditions. Factors like economic instability, political changes, and company-specific issues can affect stock prices.

5. What types of companies are listed on the Nigerian Stock Exchange?

The NSE lists a wide range of companies, including banks, telecommunications firms, oil and gas companies, manufacturing companies, and more. You can invest in both domestic and international companies listed on the exchange.

6. How can I research and choose which Nigerian stocks to invest in?

Research is crucial. You can start by analyzing a company’s financial reports, studying market trends, and considering the long-term potential of the business. It’s also helpful to seek advice from financial experts or use research tools provided by your brokerage.

7. What is the role of a stockbroker in Nigerian equities investing?

Stockbrokers are intermediaries that facilitate the buying and selling of stocks on your behalf. They execute your orders and provide guidance on market trends and investment opportunities. ARM Securities is an example of a Stockbroker

8. How much money do I need to start investing in Nigerian equities?

The amount you need to start investing in Nigerian equities varies, but it’s possible to start with a relatively small sum. Your brokerage may have minimum investment requirements, so check with them for specific details.

9. How are dividends taxed in Nigeria?

In Nigeria, dividends are subject to withholding tax. The rate may vary, but it’s typically around 10%. Ensure you understand the tax implications of your investments and consult a tax professional if needed.

10. What is the best strategy for investing in Nigerian equities?

There’s no one-size-fits-all strategy. It’s essential to diversify your portfolio, stay informed, and consider your financial goals and risk tolerance. Long-term investing is generally a sound approach.

11. How can I stay updated on the Nigerian stock market and my investments?

You can follow financial news, use stock market apps, and regularly check your brokerage account for updates on your portfolio.

12. Can I invest in Nigerian equities if I live outside Nigeria?

Yes, non-resident investors can invest in Nigerian equities. You’ll need to open a brokerage account with a broker that caters to international investors and comply with Nigerian regulations.

Remember that investing involves risks, and it’s crucial to do your due diligence, seek advice when necessary, and make informed decisions when investing in Nigerian equities. Consult with a financial advisor or a knowledgeable professional for personalized guidance.

Frequently Asked Questions (FAQ) on Treasury Bills in Nigeria

 

  1. What are Treasury Bills (T-Bills) in Nigeria?

    Treasury Bills, often abbreviated as T-Bills, are short-term debt instruments issued by the Central Bank of Nigeria (CBN) on behalf of the Federal Government. These bills are used to raise funds to finance government projects and are considered one of the safest investment options in Nigeria.

  2. How do Treasury Bills work?

    Investors purchase T-Bills at a discount to their face value and hold them until maturity, typically ranging from 91 days to 364 days. Upon maturity, investors receive the face value of the bill, and the difference between the purchase price and face value represents their return on investment.

  3. Who can invest in Treasury Bills in Nigeria?

    T-Bills are open to both individual and institutional investors, including banks, pension funds, and foreign investors. There are no restrictions on eligibility, making them accessible to a wide range of investors.

  4. Where can I buy Treasury Bills in Nigeria?

    You can buy Treasury Bills through authorized dealers such as commercial banks and other financial institutions. Many banks offer online platforms for T-Bill purchases, making it convenient for investors.

  5. What is the minimum investment amount for Treasury Bills in Nigeria?

    The minimum investment amount for T-Bills may vary depending on the issuer and the platform used. However, it is typically within the range of N100,000 to N1,000,000.

  6. Are Treasury Bills in Nigeria risk-free?

    While T-Bills are considered relatively safe investments, they are not entirely risk-free. The primary risk is interest rate risk, which means that if market interest rates rise, the value of existing T-Bills may decline when compared to new issuances. However, the Nigerian government’s commitment to servicing its debt makes T-Bills one of the safest investment options in the country.

  7. How are Treasury Bills taxed in Nigeria?

    As of my last knowledge update in September 2021, T-Bills in Nigeria are exempt from withholding tax, making them a tax-efficient investment option.

  8. Can I sell my Treasury Bills before maturity?

    Yes, you can sell your T-Bills before their maturity date in the secondary market through authorized dealers or brokers. However, the price you receive may be higher or lower than the initial purchase price, depending on prevailing interest rates.

  9. What is the difference between Treasury Bills and other government securities in Nigeria?

    Treasury Bills are short-term government debt instruments with maturities ranging from 91 days to 364 days. Other government securities, such as Federal Government Bonds, have longer maturities and may pay semi-annual or annual interest.

  10. How do I calculate the yield on Treasury Bills in Nigeria?

    The yield on T-Bills is calculated using the formula:

    Yield = (Face Value – Purchase Price) / (Purchase Price) x (365 / Days to Maturity) x 100%

  11. Are Treasury Bills a good investment choice in Nigeria?

    Treasury Bills can be a suitable investment choice for individuals and institutions looking for a low-risk, short-term investment option. They provide a predictable return and liquidity. However, it’s essential to consider your financial goals and risk tolerance when making investment decisions.

  12. Where can I get more information about Treasury Bills in Nigeria?

    You can find detailed information about T-Bills on the Central Bank of Nigeria’s website, consult with your bank’s customer service, or seek advice from a financial advisor or investment expert.

Please note that regulations and conditions related to Treasury Bills in Nigeria may change over time, so it’s essential to consult with the relevant authorities or financial institutions for the most up-to-date information before making investment decisions.

Frequently Asked Questions (FAQ) on Commercial Paper Investment in Nigeria

1. What is Commercial Paper (CP)?

Commercial Paper (CP) is a short-term debt instrument issued by corporations, financial institutions, and sometimes the government to raise funds for their working capital and short-term financial needs. CPs are typically unsecured and have maturities ranging from a few days to one year.

2. How does Commercial Paper investment work in Nigeria?

In Nigeria, investors can purchase CPs directly from issuing companies or through the secondary market. To invest, you need to have a brokerage account with a registered stockbroker like ARM Securities or dealer in the Nigerian capital market.

3. Who issues Commercial Paper in Nigeria?

CPs in Nigeria are typically issued by well-established companies, including banks, corporations, and other financial institutions. The Central Bank of Nigeria (CBN) also issues CPs to manage liquidity in the banking system.

4. What is the typical maturity period for Commercial Papers in Nigeria?

Commercial Papers in Nigeria typically have maturities ranging from 30 days to 365 days, although some may have shorter or longer tenors depending on the issuer’s needs.

5. How do I invest in Commercial Paper in Nigeria as an individual investor?

To invest in CPs in Nigeria as an individual, you should contact a registered stockbroker or dealer who can guide you through the process. They will help you identify suitable CPs and facilitate the purchase.

6. What are the risks associated with investing in Commercial Paper in Nigeria?

While CPs are generally considered low-risk investments, there are still some risks involved. These may include credit risk (the issuer’s ability to repay), interest rate risk (fluctuations in market interest rates), and liquidity risk (difficulty in selling the CP before maturity).

7. Can foreigners invest in Nigerian Commercial Papers?

Yes, foreigners can invest in Nigerian Commercial Papers. The Central Bank of Nigeria has provisions for foreign portfolio investors to participate in the Nigerian capital market.

8. Are Commercial Papers in Nigeria regulated?

Yes, Commercial Papers in Nigeria are regulated by the Securities and Exchange Commission (SEC) and the Central Bank of Nigeria (CBN). These regulatory bodies establish guidelines and rules to govern the issuance and trading of CPs to protect investors.

9. How can I check the creditworthiness of an issuer before investing in their Commercial Paper?

Before investing, you should conduct due diligence on the issuer. This includes reviewing their financial statements, credit ratings (if available), and assessing their reputation in the market. Additionally, seek advice from financial experts or analysts.

10. What are the tax implications of investing in Commercial Papers in Nigeria? –

The tax implications of investing in CPs can vary depending on the specific circumstances and tax laws in Nigeria. It’s advisable to consult a tax professional or financial advisor to understand the tax implications of your CP investments.

11. Can I sell my Commercial Paper investment before it matures? – Yes, you can sell your CP investment in the secondary market before it matures. However, the price you receive may be influenced by market conditions and the remaining time to maturity.

12. How do I redeem my investment when my Commercial Paper matures? – The issuer will typically redeem your CP investment at the end of its maturity period. You will receive the face value of the CP along with any accrued interest directly to your designated bank account.

13. Are Commercial Papers a suitable investment for short-term financial goals? – Yes, Commercial Papers are well-suited for short-term financial goals due to their relatively short maturity periods. They can provide a source of liquidity and yield for investors with short-term cash needs.

14. What should I consider before investing in Commercial Papers in Nigeria? – Before investing, consider your risk tolerance, investment goals, and the creditworthiness of the issuer. Diversifying your investment portfolio is also a prudent strategy to manage risk.

Frequently Asked Questions (FAQ) on FGN Saving Bonds

 

  1. What is the Federal Government of Nigeria Saving Bond?

    The Federal Government of Nigeria Saving Bond is a debt security issued by the Nigerian government through the Debt Management Office (DMO) to raise funds for various government projects and activities. It is designed to encourage small-scale investors to participate in government financing by providing a safe and accessible investment option.

  2. How do Federal Government Saving Bonds work?

    Investors purchase bonds with a fixed interest rate and maturity period. The government pays periodic interest (coupon payments) to investors, and upon maturity, the initial investment is returned. These bonds are typically issued in two tenors: 2-year and 3-year bonds.

  3. Who can invest in Federal Government Saving Bonds?

    These bonds are open to all Nigerian citizens, residents, and organizations, including individuals, corporate bodies, and institutions. Non-resident Nigerians can also invest in the bonds.

  4. What is the minimum investment amount for Federal Government Saving Bonds?

    The minimum investment amount for the bonds is usually 5,000 Naira, making it an accessible option for small-scale investors.

  5. How can I purchase Federal Government Saving Bonds?

    Investors can buy these bonds through authorized distribution agents, which include commercial banks and investment companies like ARM Securities. You can also use the Central Bank of Nigeria’s Treasury Bills and Bonds Account (T-Bills)

  6. Are Federal Government Saving Bonds safe?

    Yes, these bonds are considered safe investments as they are backed by the full faith and credit of the Federal Government of Nigeria. They are considered low-risk because the government has a strong track record of meeting its debt obligations.

  7. What is the interest rate on Federal Government Saving Bonds?

    The interest rates on these bonds vary and are determined by the government. Rates are typically competitive and subject to change with each new issuance. The interest is paid semi-annually.

  8. Can I sell my Federal Government Saving Bonds before maturity?

    Yes, you can sell your bonds before maturity through the secondary market. However, the market for these bonds may be less liquid than other securities, so it’s important to be aware of potential liquidity issues.

  9. Is the interest earned on Federal Government Saving Bonds taxable?

    Interest income earned on these bonds is usually exempt from federal and state taxes, making them a tax-efficient investment option.

  10. What happens when my Federal Government Saving Bond matures?

    When your bond matures, you will receive the initial principal amount along with the final coupon payment. You can choose to reinvest in new bonds or cash out the proceeds.

  11. Can I use Federal Government Saving Bonds as collateral for a loan?

    Yes, you can use these bonds as collateral for loans and other financial transactions.

  12. Where can I find more information about Federal Government Saving Bonds?

    You can visit the Debt Management Office (DMO) website or contact authorized distribution agents, such as commercial banks, for detailed information on current bond offerings, interest rates, and the application process.

Everything You Need to Know About FGN Bond

What is a bond?

A bond is a type of investment where an investor loans money to a borrower, typically a government or corporation. When you purchase a bond, you are essentially lending money to the issuer. The issuer uses the proceeds from the bonds to fund various projects or initiatives. In return, the issuer promises to pay you a specified rate of interest (the coupon) throughout the life of the bond and to repay the face value of the bond (the principal or the original amount invested) at maturity. Bonds are often used as a means of generating income or diversifying an investment portfolio.

What is the nominal value of a bond?

The nominal value of a bond, also known as the principal or face value, refers to the total amount on which the issuer pays interest and is also the amount that must be repaid to the bondholder at the bond’s maturity date.

What is a coupon?

A coupon is the periodic interest payment made by the issuer of a bond to the bondholder. This payment is generally fixed at the time of issuance and is expressed as a percentage of the bond’s face value, which is why bonds are often called fixed-income instruments.

What is a yield?

A bond’s yield refers to the return that an investor will receive from the bond, which is usually expressed as a percentage of the bond’s current market price. The yield of a bond is inversely related to its price, meaning that as the price of a bond increases, its yield decreases, and vice versa.

What do yield, dirty price, and clean price mean?

The yield of a bond is the present value of all future interest and principal payments of the bond, discounted at the bond’s yield or rate of return. The market price of a bond may include the accrued interest since the last coupon date. The price of a bond including accrued interest is known as the “dirty price,” while the price excluding accrued interest is the “clean price.”

What is the maturity date?

The maturity date of a bond is the day on which the issuer repays the principal amount or face value of the bond, plus all outstanding accrued interest. After the maturity date, the issuer has no further obligations to the bondholders.

What is Accrued Interest?

Accrued interest is the amount of interest that has accumulated on a bond since the principal investment or last interest payment date. It is calculated and paid in pre-determined intervals (annually or semi-annually) for financial instruments such as bonds.

What is the difference between a Bond and a Stock?

The main difference between stocks and bonds is that stocks represent ownership in the issuing entity, while bonds are a form of debt in which the issuer promises to pay the principal amount at a specific date. Stocks pay dividends only if the issuer declares profit, whereas bonds pay interest at a set interval and the principal amount at maturity. Bonds are also known as ‘fixed-income’ securities as they provide a fixed return on investment.

What are the types of Bonds?

Bonds can be classified into different types based on the issuer. Sovereign bonds, like FGN bonds, are issued by the federal government, and State and Local Government Council bonds are issued by state or local governments. Government Agency bonds are issued by government agencies to finance specific projects, and Corporate bonds are issued by private sector companies to raise capital.

What are the risks and rewards of investing in bonds?

Any time you lend money, there is the risk that it will not be paid back. Bond investors also face prepayment and inflation risks. However, these risks are factored into the bond pricing, with higher risk bonds offering higher yields. Bond investments can provide a stable return on investment and can be used to diversify a portfolio.

Why should I invest in FGN bonds?

Investing in FGN bonds can be a good option for retirement planning, starting or expanding a business, paying for future expenses such as school fees or weddings, building a house or funding capital projects. The risk-free investment offers relatively high and stable returns, tax-exempt income, and can be used as collateral for securing credit facilities.

What are the benefits of FGN bonds to investors and the economy?

  • FGN bonds provide a risk-free investment opportunity with tax-exempt income and can be used as collateral for loans.
  • They also promote long-term investment in the economy and alternative sources of funding for the government, promoting self-reliance and reducing over-dependence on external finance.
  • FGN bonds help investors diversify their portfolios, promote financial inclusion, and provide benchmark yield-curve for pricing other debt securities/bonds.
  • They also enhance transparency, discipline, and stability in public finance management while strengthening the implementation of monetary policy by the Central Bank of Nigeria.

Navigating The Stock Market: Why Research Is A Must Before Investing

It’s no secret that the stock market can be a tricky and intimidating place to navigate. But with lots of practice and research, it can be made much simpler and less overwhelming. In this article, we’ll explore why researching is an essential step before investing in stocks, how to go about doing it, and how you can use your findings to make smarter decisions.

What is the Stock Market?

The stock market refers to the collection of markets where stocks (pieces of ownership in businesses) are traded between investors. It usually refers to the exchanges where stocks and other securities are bought and sold. The stock market can be used to measure the performance of a whole economy, or particular sectors of it.

There are two main types of stock markets: primary markets and secondary markets. In a primary market, new issues are first offered to the public through an initial public offering (IPO). After an IPO, shares trade on a secondary market. The supply and demand of shares on the secondary market sets the price.

Investors use the stock market to buy and sell investments including stocks, bonds, mutual funds, and exchange-traded funds (ETFs). When you buy or sell these investments, you’re participating in the stock market. You can do this through a brokerage firm like ARM Securities or by working with a financial advisor.

Benefits of Researching Before Investing

There are a ton of benefits to researching before investing in the stock market!

  • First and foremost, you’ll be able to make informed decisions about which stocks to buy and sell.
  • Secondly, you’ll be able to develop a solid investment strategy that suits your individual goals and needs.
  • Thirdly, by keeping up with research you’ll be able to identify potential red flags or warning signs about certain stocks before making any big decisions.
  • Finally, staying informed about the stock market will help you avoid common mistakes that novice investors often make.

What to Research Before Investing?

When it comes to stock market investing, research is a must. There are a number of things you should research before making any investment decisions, including:

The company: Make sure you understand the business model of the company and its financials. You can find this information on the company website and in its filings with the Securities and Exchange Commission (SEC).

The industry: It’s also important to understand the industry in which the company operates. This will give you a better idea of the competitive landscape and potential risks and opportunities for the company.

The markets: Keep an eye on general market trends, as well as specific trends within the industry or sector. This will help you identify both short-term and long-term opportunities and threats for your investment.

Your own risk tolerance: Be honest with yourself about how much risk you’re comfortable taking on. This will help you choose investments that are align with your goals and risk tolerance.

Strategies for Researching Companies

Before investing in any company, it is important to do your research. There are a few different strategies you can use to research companies so that you can make the most informed decision possible.

Read annual reports:

These will give you an overview of the company’s financial situation and health. It is important to understand a company’s financials before investing so that you can assess the riskiness of the investment.

Read news articles about the company:

This will keep you up-to-date on any major developments or newsworthy events happening with the company. You can also get a sense of analyst sentiment by reading what experts are saying about the stock.

Talk to people who are familiar with the company:

If you know anyone who works for or has invested in the company, they may be able to provide you with valuable insights. Talking to people who are knowledgeable about the company can help give you a more well-rounded view of it.

Investing in the stock market can be a lucrative opportunity, but it comes with its own set of risks. The best way to mitigate these risks is through thorough research and understanding of the market before you begin investing your hard-earned money. While making informed decisions may take time, remember that there really isn’t any shortcut to successful investing – knowledge and careful planning are key components when navigating the stock market. Invest wisely and good luck!