The Nigeria Infrastructure Debt Fund (NIDF), the first listed infrastructure debt fund in the country, has recorded a 40 percent growth in interest income on infrastructure loans for the nine months of 2024.
Its loans grew to N12.6 billion in the nine months of 2024 from N8.99 billion in the corresponding period of 2023.
Net fair value losses on infrastructure loans declined to N451.4 million from N830.9 million.
“NIDF offers the most attractive yield on the Nigerian Exchange Limited and is renowned for paying quarterly distributions,” the report said.
Total income grew to N15.14 billion in the first nine months of 2024 from N11.9 billion in the same period of 2023. Other income stood at N2.04 billion from N2.05 billion.
Operating expenses grew to N1.44 billion from N1.29 billion during the reviewed period.
NIDF’s after-tax profit grew to N13.7 billion in the nine months of 2024 from N10.58 billion in the same period of 2023.
It recorded a 3840 basis points increase in the amount of value an investor earns when all distributions are reinvested.
Read also: Chapel Hill’s NIDF eyes N20.24bn from series 10 offer
NIDF 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.
“During Q3 2024, the fund successfully concluded the fundraising for Series 10 and it is expecting to receive the allotment approval from SEC soon,” it said in a statement.
“As of the period ending 30 September 2024, NIDF had a diversified portfolio of investments. The infrastructure loan portfolio had a weighted average annualised yield of 22.08 percent, weighted average tenor at the disbursement of 9.1 years, and weighted average remaining life of 4.95 years,” it stated.
The fund announced a quarterly distribution for the third quarter ended 30 September 2024 – of N5.09 per unit on October 16, 2024, with a qualification date on October 21, 2024.
“This distribution will be paid to eligible Unitholders on 28 October 2024 and is fully funded from the cash inflows generated by the Fund during the quarter.
“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,” it stated.
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.
NIDF provides investors with regular, sustained, long-term distributions and preserves capital over the long term by generating exposure to Naira-denominated infrastructure debt in Nigeria, which generates regular and predictable long-term cash flows. It offers attractive yields on the NGX and has continuously paid quarterly distributions.
With its current capital base of over N104.5 billion, NIDF has a diversified and growing portfolio of infrastructure loans in a broad range of sectors including power generation, energy infrastructure, transportation, telecom, and social infrastructure (education and healthcare).
NIDF has established a template that can bridge the infrastructure deficit facing not just Nigeria but countries across Africa by mobilising domestic capital for financing Nigeria’s infrastructure.
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