The Nigeria Infrastructure Debt Fund (NIDF) has launched its Series 10 offer, aiming to raise up to N20.24 billion. The offer, which opened on May 15, will close on June 13. Sponsored by the Chapel Hill Denham Group, with Chapel Hill Denham Management Limited acting as the Fund Manager. NIDF holds an “A” rating from Agusto & Co.
This Series 10 offer marks the Fund’s tenth capital raise since its inception in 2017, and the second since its listing on the Nigerian Exchange Limited (NGX). The offer is part of the N200 billion Issuance Program, with 185 million units of N100 each priced at N109.43.
NIDF aims to channel both domestic and foreign institutional capital into Nigeria’s infrastructure development, achieving significant developmental milestones. It’s the first and only infrastructure debt fund domiciled in Nigeria. NIDF is classified as an Infrastructure Fund under the rules and regulations of the Securities & Exchange Commission (SEC) Nigeria and the National Pension Commission.
Proceeds from this offer will be directed towards infrastructure loans approved by the Fund Manager’s Investment Committee. NIDF is notable as Nigeria’s largest and Africa’s first-ever listed infrastructure investment trust, providing long-term, Naira-denominated financing for infrastructure projects in Nigeria. It is a closed-ended investment trust, registered and regulated by the Nigerian SEC and listed on both the FMDQ and NGX.
Investors in NIDF benefit from regular, sustained, long-term distributions and capital preservation by generating exposure to Naira-denominated infrastructure debt. This is a regular yields and predictable long-term cash flows. The Fund offers the most attractive yield on the NGX and has consistently paid quarterly distributions.
With a current capital base of over N104.5 billion, NIDF boasts a diversified and growing portfolio of infrastructure loans across sectors. This sectors include power generation, energy infrastructure, transportation, telecom, and social infrastructure (education and healthcare). By mobilizing domestic capital for Nigeria’s infrastructure, NIDF has established a model that could bridge the infrastructure gap not only in Nigeria but across Africa.
Financial Performance Highlights
Earnings Analysis:
- Total income for FY2023 was ₦22.1 billion, an 87.5% increase from ₦11.8 billion the previous year, including one-off income from the sale of an infrastructure asset.
- Interest income from infrastructure loans grew by 36.0% to ₦12.7 billion, up from ₦9.3 billion. The previous year, driven by increased infrastructure loans during the period.
- Operating expenses increased by 15.4% year-on-year to ₦1.72 billion. Due to higher fund-related costs linked to the increase in Net Asset Value (NAV).
- Profit rose by 98.0% year-on-year to ₦20.4 billion, boosted by additional infrastructure loans and income from asset sales.
Financial Position:
- Infrastructure loans grew by 37.2% year-on-year from ₦62.6 billion to ₦85.8 billion.
- Total assets increased by 13.9% year-on-year from ₦94.6 billion to ₦107.88 billion.
- Total liabilities grew by 56.2% year-on-year from ₦2.88 billion to ₦4.49 billion.
- Net Asset Value rose by 12.6% year-on-year from ₦91.7 billion to ₦103.3 billion.
Source : Chapel Hill Denham
