Subsequent to receiving required approvals from the Securities and Exchange Commission, Chapel Hill Denham Management has registered and established the Nigeria Infrastructure Debt Fund (NDIF) ₦200bn Issuance Programme. The first series under this issuance programme (Series I: 49,450,000 units of ₦101.20 each) worth over ₦5bn has been issued with 14 investors already making commitments.
The new fund is closed-ended and has its investment focus on the development of traditional economic and infrastructural sectors, especially transportation, power, renewable energy, utilities, energy infrastructure (e.g. storage terminals), logistics and other sectors that involve public-private partnerships. It aims to enable investors access infrastructure as an asset class, while providing the benefit of predictable returns available from long-dated infrastructure debt investments.
The NDIF received the approval on the 14th of July, 2017 from the FMDQ Board Listings, Markets and Technology Committee to be listed on the FMDQ OTC Securities Exchange platform and in line with traditions at FMDQ, a listing ceremony was held at the offices of the Exchange on Monday, July 17, 2017.
During his keynote address Bolaji Balogun – Managing Director, Chapel Hill Denham Management (the Fund Manager) explained:
“Over the last decade, our firm has been focused on infrastructural investments. We are proud to take this pioneering role and the NDIF fits naturally with our commitment to develop the productive infrastructure of Nigeria and Africa at large. The NDIF was conceptualized by the progressive regulatory environment that Nigeria has and this only asserts the forward-thinking paradigm and approach of PenCom, the SEC, and the FMDQ. Infrastructure debt investment provides a patented amalgamation of long-term, stable, and predictable income as well as a much higher yield than can be gotten from investing in government bonds”
Also speaking on the fund, Anshul Rai, Chief Executive Officer of the NDIF:
“The NDIF is a reliable partner for project owners who are in the search of long-dated infrastructure debt. Also, the NDIF is removing the risk associated with currency and exchange rates for both investors and borrowers by funding in Naira. This essentially helps make it much safer to invest in Nigerian infrastructure debt”.