NGX recorded N200b Nigeria’s first naira designated infrastructure fund

Nigeria Exchange (NGX) yesterday recorded the N200 billion Nigeria Infrastructure Debt Fund (NIBF), surfacing the way for existing and new investors to trade on Nigeria’s first local currency-denominated infrastructure investment trust fund.

NIDF, managed by Chapel Hill Denham, target at providing investors regular and steady income by making debt investments in the context of infrastructure projects in Nigeria.

The fund, backed by major institutional investors including the Nigeria Sovereign Investment Authority (NSIA), has provided long-term financing in naira for private infrastructure projects. Since inception, it has returned 155 per cent.

NIDF’s 853.818 million units were listed on the main board of NGX at N8.39 per share. NIDF will remit quarterly dividends to investors by paying out profits from investing in industries like power, transportation, healthcare and education.

The listing yesterday was commemorated with a closing gong ceremony where the management of the NIDF also provided facts about the fund.

Chief Executive Officer, Chapel Hill Denham, Mr Bolaji Balogun said the listing of the fund is a great move for Nigeria’s economy.

“This is the first time an infrastructure debt fund is listed on the Exchange. NIDF has been existing since 2017 and it has distributed successively for 24 quarters. We have increased the diversity of the areas we invest into – transportation, power, education, telecoms, social infrastructure,” Balogun said.

He said the country needs to invest consistently to grow in that area of infrastructure.

He also stressed the importance of infrastructure as an asset class.

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Chief Executive Officer, Nigeria Infrastructure Debt Fund (NIBF), Anshul Rai, outlined the achievements of the fund since its inception in 2017.

“Through the good work of the team, we have been fortunate not to have non-performing loans. We have had situations where the price of the funds have been very strong with very significant returns,” Rai said.

Chairman, Nigeria Infrastructure Debt Fund (NIBF), Mr Phill Southwell lauded the listing, adding that by listing on the exchange, NIDF hopes to crowd in retail investors.

He said the fund’s investment strategy has the sustainability principles of environment, sustainability and governance (ESG) integrated into it.

Chief Executive Officer, Nigerian Exchange (NGX), Mr Temi Popoola said Chapel Hill Denham has been consistent with immense value addition to the Exchange and a key contributor to capital market growth in the last five years.

“One big innovation in the last three years was the MTN public offer. It included a complete end-to-end digital application process, which could not have been possible without Chapel Hill. We have been trying to showcase Nigeria as an investment destination, and Chapel Hill has been a strong supporter of that system,” Popoola said.

He added that the capital market is increasingly becoming a vehicle for solving key governance problems, especially in the aspect of raising debt funding.

He noted that the NIDF is an elegant solution that exist not only in Nigeria but in foreign markets.

“The retail investor landscape will find this very attractive. It sells itself,” Popoola said.

He said the Exchange remains committed to infrastructural development and wealth creation for the country.

He noted that the listing of NIDF aligns with NGX’s mission to support financial market instruments that drive sustainable wealth creation and infrastructural advancement in Nigeria.

According to him, NGX will further enhance the visibility of NIDF, giving investors access to more investment options.

Source: The Nation