BII invests $15m equity in Valency International for processing and warehouse infrastructure in Nigeria

The UK’s development finance institution (DFI) and impact investor, British International Investment (BII), announced today that it has executed legally binding agreements to invest US$15 million in equity into Valency International (Valency), an agricultural commodities trading house with its headquarters located in Singapore, to finance the company’s expansion of processing and warehouse infrastructure in Nigeria. The deal is anticipated to finalize in early 2024, pending regulatory approval.

Within two years of finishing its original investment, BII has the opportunity to contribute an additional $35 million in stock to Valency on top of its $15 million pledge.

With about one in three Nigerians employed in the sector and contributing 25% of the country’s GDP, agriculture is a major economic driver in the country. The major sector of agriculture, crop production[1], produces roughly 87.6% of the industry’s overall output. In the local agriculture sector, food processing and manufacturing are still underdeveloped.

The BII-funded new Valency facilities will fortify collaborations with nearby farmers and processing facilities to optimize their yield and furnish a more steady stream of high-grade products. It is anticipated that the projects will benefit at least 60,000 additional farmers and generate up to 2,800 jobs in Nigeria’s low-income neighborhoods.

The company will receive value-added support from BII, the first institutional investor in Valency, as it develops best practices in corporate integrity and Environmental and Social Management System (ESMS). The two sides will collaborate closely to raise value creation, increase gender inclusion, and improve the quality of jobs.

“The UK’s sustainable agriculture work in Nigeria helps to not only mitigate greenhouse gas emissions and adapt to a changing climate, but also strengthens livelihoods and improves nutrition, supporting food security and poverty alleviation,” stated Jonny Baxter, Deputy High Commissioner for the United Kingdom.

“I’m thrilled to welcome this new investment from the UK to strengthen Nigeria’s food processing skills, which will lead to job creation throughout the country. We are eager to keep assisting Nigeria’s agricultural industry and the chances it presents for the country’s economic development.

“The strategic opportunity to catalyze growth in Nigeria’s food and agricultural sector should be seized and offers the chance to leverage its immense food export potential,” stated Benson Adenuga, Head of Office and Coverage Director, Nigeria for BII. We are pleased to strengthen our support for Nigeria’s smallholder farmers and food security while generating jobs that promote industrialization and ease trade between the country and other countries.

We are excited to work with Valency as a partner, and we anticipate the important influence and growth of the economy that our catalytic financing will enable.

Speaking about the agreement, Valency International CEO Mr. Sumit Jain said, “We have been thoughtful and thorough in our selection of partners for the next stage of our expansion.

Despite receiving approaches from other investment groups, we decided to work with BII because we are impressed with their commitment to the regions where we have made a sizable medium-term investment commitment. We are also fortunate that Valency has been selected by BII to spearhead its impact agenda in Nigeria’s expanding food and agriculture industry.

As part of the deal, BII’s Head of Food and Agriculture, Roman Frenkel, will join the Board of Valency. The UN Sustainable Development Goal 8 on decent work and economic prosperity is aided by BII’s commitment.