The Nigeria Infrastructure Debt Fund (NIDF), the first listed infrastructure debt fund in the country, has recorded a 20.1 percentage points increase in the amount of value an investor earns when all distributions are reinvested.
NIDF’s latest financial statements show that its total return rose to 309.6 percent in the first six months of 2024 from 289.5 percent in the full year of 2023. This implies the amount of value an investor earns when all distributions are reinvested and increased during the period.
“NIDF offers the most attractive yield on the Nigerian Exchange Limited and is renowned for paying quarterly distributions,” the report said.
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It said the fund’s objective is to provide investors with regular, sustained, and long-term distributions to preserve capital over the long term by generating exposure to naira-denominated infrastructure debt in Nigeria, which generates regular and predictable long-term cash flows.
Here are five highlights from the fund’s report
Profit grew to N8.4bn
NIDF’s after-tax profit grew to N8.37 billion in the first half of 2024 from N7.23 billion in the same period of 2023, while total income increased to N9.49 billion from N8.06 billion.
Interest income on infrastructure loans surged to N7.9bn
The interest income on infrastructure loans increased to N7.9 billion in the first half of 2024 from N5.67 billion in the similar of 2023. Net fair value losses on infrastructure loans dropped to N208.3 million from N783.1 million.
The infrastructure loan portfolio has a 20.6% weighted average annualised yield
NIDF said in a statement highlighting its portfolio summary that as of the period ending June 30, 2024, it has a diversified portfolio of 25 investments.
“The infrastructure loan portfolio had a weighted average annualised yield of 20.6 percent, weighted average tenor at the disbursement of 9.2 years, and weighted average remaining life of 4.8 years,” NIDF said.
Loans are priced at 300 – 450 basis points
NIDF said the loans are typically priced at 300-450 bps over the benchmark on a floating rate basis.
“NIDF continues to consistently outperform its benchmark: the 10-Year FGN bond,” it said in the statement.
It further stated that NIDF performance notwithstanding inflation exceeds 30 percent for the first time since the late 1990s. “NIDF is NIDF is sponsored by the Chapel Hill Denham Group, and Chapel Hill Denham Management Limited acts as the Fund Manager of NIDF. The fund Manager is rated “A” by Agusto & Co.marginally ahead of the Consumer Price Index.”
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NIDF quarterly distribution stood at N4.27 per unit
The fund announced a quarterly distribution for the second quarter ended June 2024 which is N4.27 per unit on July 11, 2024, with a qualification date of July 18, 2024.
“This distribution will be paid to eligible Unitholders on July 25, 2024, and is fully funded from the cash inflows generated by the fund during the quarter,” it said.
NIDF stated that going forward, the fund manager intends to continue paying quarterly distributions to unitholders, in line with the actual performance of the fund and the provisions of the constitutional documents.
NIDF is sponsored by the Chapel Hill Denham Group, and Chapel Hill Denham Management Limited acts as the Fund Manager of NIDF. The Fund Manager is rated “A” by Agusto & Co.
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