Eight things to know about Nigeria Infrastructure Debt Fund

The Nigeria Infrastructure Debt Fund (NIDF) has recorded a 22.4 percent increase in the amount of value an investor earns when all distributions are reinvested.

The fund’s latest quarterly investor report shows that its total return rose to 289.5 percent in 2023 from 236.5 percent in 2022. This implies the amount of value an investor earns when all distributions are reinvested and increased during the period.

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“NIDF offers the most attractive yield on the NGX and is renowned for paying quarterly distributions,” the report said.

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 eight things to know about the fund.

Profit rose to N20.4bn

NIDF’s after-tax profit surged to N20.4 billion from N10.3 billion, while total income increased to N22.1 billion from N11.8 billion.

Interest income on infrastructure loans increased to N12.7bn

The interest income on infrastructure loans increased to N12.7 billion from N9.3 billion. Net fair value losses on infrastructure loans stood at a positive of N543.4 million from a negative of N621.6 million.

Net assets grew 13%

Net assets attributed to unit holders recorded a 13 percent year-on-year growth to N103.9 billion from N91.7 billion.

The number of units increased to 960,649 from 853,576. Naira per unit rose to N108.11 from N107.47.

Total assets rose by 14%

Total assets grew by 14 percent to N108.2 billion from N94.6 billion. The growth was driven by financial assets held at fair value through profit or loss at N85.8 billion, cash and cash equivalents at N20.3 billion, other receivables at N1.9 billion and financial assets held at amortised cost with N170,000.

Liabilities hit N4.4bn

Total liabilities climbed to N4.4 billion from N2.9 billion, driven by distribution payables of N2.7 billion and other payables, which stood at N1.6 billion.

Portfolio of 26 investments

NIDF had a diversified portfolio of 26 investments during the period ending December 31, 2023.

The infrastructure loan portfolio had a weighted average annualised yield of 18.1 percent, weighted average tenor at disbursement of 8.9 years, and weighted average remaining life of 4.7 years.

Operating expenses rose to N1.72bn

NIDF’s operating expenses increased to N1.72 billion from N1.5 billion during the period.

Investment

A new infrastructure loan of N3.69 billion was approved by the Investment Committee of the Fund in the fourth quarter of 2023.

The loan has now been disbursed after execution of definitive documentation and compliance with disbursement conditions by the borrower.