The Nigeria Infrastructure Debt Fund (NIDF) by Chapel Hill Denham will pay out N8.17 billion as distribution to unitholders for the first half of 2023.
According to corporate notices issued by Chapel Hill Denham, distributions of N4.23 per unit for Q1 2024 and N4.27 per unit for Q2 2024 will be made for the fund’s 960.947 million units.
The fund distributed N4.07 billion for the first quarter of 2024, while it will distribute N4.10 billion for the second quarter of 2024.
According to the notice, the Q2 2024 fund will be distributed to eligible unitholders on July 25, 2024, fully financed by the cash inflows generated by the fund during the quarter.
NIDF H1 2024 financial highlights
- During the half, the fund generated a total income of N9.49 billion, marking an 18% increase from the N8.06 billion posted in H1 2023.
- A significant portion of its total income was the interest income on infrastructure loans, with N7.97 billion generated as interest income on infrastructure loans in H1 2024, marking a 40.5% growth from the N5.67 billion generated in H1 2023.
- NIDF recorded an operating profit of N8.37 billion in H1 2024, marking a 16% growth from the N7.23 billion operating generated in H1 2023.
- The fund’s operating profit was its net income, as it recorded no tax liabilities during the period.
- During the period, the fund’s total assets hit N108.6 billion in H1 2024, representing a 0.78% growth from the N107.8 billion posted in H1 2023.
- With its net assets hitting N103.5 billion, reflecting a meagre 0.18% improvement from the N103.3 billion NAV as of H1 2023.
NIDF portfolio summary
At the end of the period, the fund’s portfolio comprised 25 investments, encompassing off-grid solar projects, marine infrastructure, pipeline networks, gas processing plants, solar home systems, integrated power plants, a captive power plant, telecom towers, broadband internet infrastructure, and a student accommodation site.
The infrastructure loan portfolio reported a weighted average annualized yield of 20.6%, with a weighted average tenor at disbursement of 9.2 years and a weighted average remaining life of 4.8 years.
It is noted that 100% of the fund’s loan portfolio is denominated in Naira, with 94% of these loans being floating rate loans. 16% of the loans are exposed to construction-related activities. NIDF loans are typically priced at 300 to 450 basis points above the benchmark interest rate on a floating rate basis.
Despite a 16% exposure to construction activities, the fund reported a 73% year-on-year decline in loan impairments, recording an impairment of N208.3 million, down from N783.1 million in H1 2023.
NIDF is presently the first and only infrastructure debt fund in Nigeria. It is presently listed on the NGX and the FMDQ Exchange.