GuarantCo, a member of the Private Infrastructure Development Group (PIDG), has provided a 100 per cent credit guarantee to support a $75 million debt facility for Robust International Pte Ltd to build a new cashew nut processing plant in Ogun State.
The facility will enable Robust to double its existing processing capacity in Nigeria from 100 metric tonnes per day to 220 metric tonnes per day, helping to close a long standing gap in the country’s cashew value chain.
Nigeria produces an estimated 250,000 to 300,000 tonnes of raw cashew nuts annually, but less than 10 per cent is processed locally, with most exported unprocessed and losing up to 80 per cent of potential export value.
According to GuarantCo, the new plant is expected to stimulate the local economy through the procurement of cashew nuts from about 10,000 smallholder farmers, most of them low income earners. Over the lifetime of the guarantee, the project is projected to generate about $335 million in export revenue and local supply chain procurement.
The facility will also incorporate technology to convert waste by products into value added biomass and biofuel inputs, improving the project’s environmental footprint.
Up to 900 jobs are expected to be created, with women projected to occupy as many as 78 per cent of the roles. Robust also aims to increase procurement from women farmers from 15 per cent to 25 per cent by 2028 as it expands into new regions and strengthens gender responsive farmer outreach programmes.
The transaction aligns with the United Nations Sustainable Development Goals on Zero Hunger and Industry, Innovation and Infrastructure.
British Deputy High Commissioner to Nigeria, Jonny Baxter, reiterated the United Kingdom’s commitment to supporting innovative financing that mobilises private capital into Nigeria’s productive economy through UK-backed institutions such as PIDG.
“The UK is proud to support innovative financing that mobilises private capital into Nigeria’s productive economy through UK backed institutions such as PIDG. By backing investment into local processing and value addition, this transaction supports jobs, exports and more resilient agricultural supply chains. Complementing this, through the UK Nigeria Enhanced Trade and Investment Partnerships and the Developing Countries Trading Scheme, the UK is supporting Nigerian businesses to scale exports to the UK and beyond, demonstrating how UK backed partnerships help firms grow and compete internationally,” he said.
The Head of Africa and Middle East Investments at GuarantCo, Dave Chalila, said the transaction reflects PIDG’s mandate to crowd in institutional investors into underfinanced, high impact sectors such as agri processing.
“This transaction marks GuarantCo’s third collaboration with M&G Investments and Symbiotics, emphasising our efforts to bring replicability to everything we do so that we accelerate socio economic development where it matters most. The transaction is consistent with PIDG’s mandate to mobilise private capital into high impact, underfinanced sectors. In this case, crowding in institutional investors to the African agri processing value chain. As with the two recent similarly structured transactions, funding is channelled through the Symbiotics institutional investor platform, with the notes externally rated by Fitch and benefiting from a rating uplift due to the GuarantCo guarantee,” he noted.
Also speaking, the Group Executive Director of Robust International, Vishanth Narayan, said the project represents a strategic step in expanding local value addition and reaffirmed the company’s commitment to building resilient and ethical supply chains through deeper farmer engagement and sustained investment in processing capacity.
“As a global leader in agricultural commodities, Robust International remains steadfast in its commitment to building resilient, ethical and value adding supply chains across origin and destination markets. This transaction represents an important step in advancing our long term strategy of strengthening processing capabilities, deepening engagement with farmers and enhancing local value addition in the regions where we operate. Through sustained investment, disciplined execution and decades of operating experience, we continue to focus on delivering reliable, high quality products while fostering inclusive and sustainable economic growth.”
Director at M&G Investments, María Redondo, described the deal as a clear example of how credit enhancement can unlock institutional capital while managing currency and credit risks.
“We’re pleased to partner again with Symbiotics and GuarantCo on this innovative transaction. The guarantee gives us the assurance to invest in hard currency emerging market debt while supporting Robust’s new cashew processing plant in Nigeria. It’s a clear example of how smart credit enhancement can unlock institutional capital for high impact development and manage currency and credit risks effectively. This is another strong step in channelling institutional capital into meaningful, on the ground growth,” she said.
Valeria Berzunza of Symbiotics said the collaboration demonstrates how well structured financial products can channel institutional investment into commercially viable projects with strong social and gender outcomes in emerging markets.
“This third collaboration reinforces the value of developing structured financial products through strategic partnerships to mobilise investment from institutional investors seeking exposure to highly rated securities into high impact projects in emerging markets. We are pleased to continue our collaboration with M&G Investments, GuarantCo, and now with Robust through a transaction with a strong social and gender focus, demonstrating that well structured products can boost commercially attractive, viable, and impactful investments,” she said.
The debt facility was arranged through a Symbiotics bond platform, which issued notes backed by the GuarantCo guarantee and fully subscribed by M&G Investments. The deal was completed in record time following similar structures recently deployed in Côte d’Ivoire and Senegal.
PIDG is funded by the governments of the United Kingdom, the Netherlands, Switzerland, Australia, Sweden, and Canada.