NGX lists first Naira denominated infrastructure fund, NIDF

The first local currency-denominated infrastructure investment trust fund in Nigeria and Sub-Saharan Africa, Nigeria Infrastructure Debt Fund (NIDF) has been listed on Nigerian Exchange Ltd. (NGX).

The listing, which took place on Thursday in Lagos, was commemorated with a Closing Gong Ceremony where the management of the funds engaged market stakeholders with a Facts Behind the Listing presentation at the Exchange.

The Chief Executive Officer (CEO), NGX, Mr Temi Popoola, said that the NIDF is a N200 billion public infrastructure investment fund managed by Chapel Hill Denham.

Popoola explained that the fund was backed by major institutional investors, including the Nigeria Sovereign Investment Authority (NSIA).

He said that the fund had provided long-term financing in Naira for private infrastructure project and had returned 155 per cent since inception.

The NGX CEO added that the NIDF’s 853.82 million units were listed on the main board of NGX at N108.39 per share.

He said, NIDF would remit quarterly dividends to investors by paying out profits from investing in industries like power, transportation, healthcare and education.

Popoola also said that Chapel Hill Denham had 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, which included a complete end-to-end digital application process and 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,” he said.

According to him, the capital market is increasingly becoming a vehicle for solving key governance problems, especially in the aspect of raising debt funding.

Popoola noted that the NIDF an elegant solution that exist not only in Nigeria but in foreign markets, saying that the retail investor landscape would find it attractive because it sells itself.

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

Balogun said that it was the first time an infrastructure debt fund was listed on the Exchange.

“NIDF has been existing since 2017 and has distributed successively for 24 quarters.

“We have increased the diversity of the areas we invest into, such as transportation, power, education, telecoms and social infrastructure,” he said.

According to him, the country needs to invest consistently to grow in that area of infrastructure, as an asset class.

On his part, the CEO of NIDF, Mr Anshul Rai, credited the fund’s work since its inception in 2017.

Rai said: “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.

Also, Mr Phill Southwell, Chairman NIDF, lauded the listing on the exchange and express NIDF’s optimism to crowd in retail investors.

Southwell stated that the funds investment strategy also has Environmental, Social and Corporate Governance (ESG) integrated into it.