Company Invites Nigerians to Invest in First Naira Infrastructure Fund on Stock Exchange at N8 Each
- Nigeria Infrastructure Debt Fund, NIDF, is now listed on Nigerian Exchange Limited
- NIDF is an N200 billion public infrastructure investment fund run by Chapel Hill Denham
- The fund was backed by the Nigeria Sovereign Investment Authority and others
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Nigeria Infrastructure Debt Fund (NIBF) is now listed on the Nigerian Exchange Limited (NGX), making it the first infrastructure investment trust fund in Sub-Saharan Africa and Nigeria to be denominated in local currency.
This took place on Thursday, October 5, 2023, at a Closing Gong Ceremony to honour the listing. Management of the Funds gave a presentation on the "Facts Behind the Listing" to market participants.
Chapel Hill Denham is the manager of the N200 billion public infrastructure investment fund.
Source: UGC
Long-term funding for private infrastructure
The fund offers long-term funding in naira for private infrastructure projects, with backing from significant institutional investors, including the Nigeria Sovereign Investment Authority (NSIA). BuisnessDay reported that it has produced a 155% return since launch.
The 853,817,692 NIDF shares listed on the NGX Main Board at N8.39 each are expected to provide quarterly dividends to investors by paying out income from investments in sectors like power, transportation, healthcare, and education.
Temi Popoola, CEO of NGX, claims that Chapel Hill Denham has continually increased the Exchange's value and contributed significantly to the growth of the capital markets during the previous five years.
Popoola claimed that the MTN public offer was one significant innovation from the previous three years. Without Chapel Hill, he claimed, a complete end-to-end digital application procedure would not have been conceivable.
He claimed that Chapel Hill had greatly supported the NGX's efforts to promote Nigeria as an investment destination.
The CEO continued that the capital market, particularly in the area of raising debt money, is becoming a means of resolving significant governance issues. He pointed out that the NIDF is a sophisticated solution available in Nigeria and international markets.
He continued by saying that this would be highly appealing to the retail investor landscape.
According to Chapel Hill Denham CEO Bolaji Balogun, listing the fund is a wise move for the Nigerian economy.
He said:
“This is the first time an infrastructure debt fund is listed on the Exchange. NIDF has been existing since 2017 and it has distributed successively for 24 quarters. We have increased the diversity of the areas we invest into – transportation, power, education, telecoms, social infrastructure.”
According to Balogun, consistent investment is necessary for the nation to prosper in that infrastructure area. He also underlined the importance of infrastructure as a class of assets.
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In his view, Charles Abuede, a financial analyst said that infrastructure investment trust funds like NIDF is welcomed development on Nigeria’s bourse.
He noted that this it will play a crucial role in financing and supporting infrastructure development in a country such as Nigeria.
According to Abuede, such funds can contribute to the development of essential infrastructure projects while potentially earning returns on their investments.
"The NIDF can have significant impacts on Nigeria's investment ecosystem as we think it can improve infrastructure development, enhance job creation, and economic growth by financing essential projects in areas like transportation, energy, healthcare, and education. This, in turn, can attract further investments and other inflows, stimulate economic activity, and improve the overall competitiveness and development of the country."
An earlier report by Legit.ng, cited that following Tinubu's election, NGX foreign transactions reached N145 billion in the first half of 2023. This signalled an increase in foreign investment in Nigeria.
NGX invites Nigerians to invest in FG's bonds, subscriptions start from N5k only
The federal government has listed two additional FGN Savings Bonds on the Nigerian Exchange Limited (NGX) trading platform, Legit.ng reported.
Godstime Iwenekhai, the NGX's Head of Listings Regulation Department, revealed this in a notice.
The notification states that on August 31, 2023, investors received the savings bonds they had purchased.
Source: Legit.ng
