Nigerian finance company ARM’s infrastructure fund is expected to close mid-August, with the majority of the funding coming from pension funds.

The fund will be the country’s first infrastructure fund to invest in transport, energy and utility sectors across West Africa. The $250 million (±R2.7 billion) infrastructure fund will invest equity in road, airport, electricity, gas, water and sewage and drainage projects.

ARM managing Director Opuiyo Oforiokuma told Reuters that the fund is close to raising the necessary $250 million from various investors, including the African Development Bank. To meet short, medium, and long term investor objectives, the fund is structured in such a way that will allow capital to be raised not only from Nigerian investors, but also from international investors. A parallel legal structure will serve this purpose.

The fund’s investment strategy is based on carefully identifying and screening bankable Brownfield and Greenfield infrastructure assets in which to invest, and on working with the relevant investee management teams and other investors to optimise returns from those assets. The fund is therefore focused on making direct investments in entities that have as their primary focus the management, ownership, and operation of infrastructure assets.