FMDQ lists N5bl first tranche of Pioneer Nigeria Infrastructure Debt Fund


Monday, July 17, 2017 7.00pm/Proshare WebTV

The debt capital market in Nigeria, witnessed another significant market activity with the listing of the pioneer “Chapel Hill Denham Nigeria Infrastructure Debt Fund”.

This was the first tranche of N5bl out of the total fund of N200bl planned by the Nigerian Infrastructure Debt Fund for the market. It comes with a total of N49, 450, 000 units of N101.20k each, out of 2bl units.

The Fund, which is the first-ever listed infrastructure debt fund in Nigeria (and Sub-Saharan Africa), is a close-ended fund and has its investment focus on the traditional infrastructure sectors, primarily  transport, power, renewable energy, utilities, energy infrastructure (e.g. storage terminals), logistics and other public-private-partnership type investments. The NIDF is geared towards supporting infrastructural development in Nigeria.

Giving the special address at the event, the CEO of Chapel Hill Denham who is also the Chief Investment Officer for NIDF Mr Bolaji Balogun said the “NIDF is a small, but giant leap for infrastructure financing in Nigeria, through the Debt Capital market”.

He informed key market stakeholders at the listing ceremony, that about 14 investors had already made commitments to the fund, which was remarkable for the market.

Mr Balogun believed the NIDF had the prospects of attracting investments into the Nigerian infrastructure space, noting that the fund is denominated in the country’s local currency (naira).

Speaking further Mr Balogun shared that the fund had low-risk and was appropriate for pension funds in the country, currently valued at N6trl. According to him “The NIDF met all the regulatory requirements of the Securities and Exchange Commission and the National Pension Commission”.

The MD/CEO of the FMDQ OTC Mr Bola Onadele in his remarks described the listing as another milestone for the debt capital market that will enhance liquidity and bring more depth to the market.  

Mr Onadele lauded Chapel Hill Denham for the market initiative and was confident that the fund will make the debt capital market more attractive locally and globally.  

The FMDQ CEO called on the Federal Government to encouraged government reforms and regulations that will position key sectors to be commercially viable to galvanise huge capital to infrastructure. He also stated that the OTC Exchange was working hard in collaboration with other key stakeholders to facilitate the development of a sustainable finance strategy for the country.   

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