Chapel Hill Denham Nigeria Infrastructure Debt Fund Announces N4.40/unit Quarterly Distribution, Delivers 29.7% Total Returns in First Year of Operations
The Chapel Hill Denham Nigeria Infrastructure Debt Fund (“NIDF” or the “Fund”) today announced a quarterly distribution of 4.40 Naira per Unit for the second quarter of 2018. This is the fourth consecutive and largest quarterly distribution made during its first year of operations. Along with an interim distribution in August 2017, the total cash distributions made by the Fund during its first year of operations have aggregated to 17.10 Naira per Unit (equal to compounded annualized yield of 18.2%).
During the first full year of operations, NIDF has achieved a total return of 29.7% – primarily in the form of cash distributions, along with issue of bonus units (5.10% in February 2018) and gains in the Net Asset Value of the Fund’s units.
During Q2 2018, the yield of the Fund’s portfolio was 18.55%, which is nearly at 500 basis points premium to the prevailing average yield on 10-year FGN bonds.
Commenting on the quarterly distribution and the Fund’s performance during its first year of operations, Mr Bolaji Balogun, Group CEO of Chapel Hill Denham and Fund’s CIO, said: “We are extremely pleased with the NIDF’s performance during its first year of operations. We have delivered to our unitholders consistent and predictable returns, along with low volatility and principal preservation. This is exactly what we had set out to do when we launched the NIDF.”
Commenting on the Fund’s activities during the year, Anshul Rai, CEO of NIDF, said: “NIDF seeks to channel institutional capital, particularly from the pension industry, into productive infrastructure for Nigeria, which is critical to overall economic and social development, as well as diversification of the economy away from oil & gas. NIDF’s current portfolio consists of senior loans to over a dozen projects spread across different states and the geo-political zones of Nigeria. In addition to the financial returns achieved, NIDF also measures and reports on the “development outcomes” from its investments. Its investments have not only led to additions to Nigeria’s infrastructure stock but also supports and creates thousands of jobs and reduce greenhouse gas emissions.”
The Chapel Hill Denham Nigeria Infrastructure Debt Fund (“NIDF” or the “Fund”) is the first and only infrastructure debt fund dedicated to and domiciled in Nigeria. The Fund is classified as an Infrastructure Fund under the relevant rules and regulations of the Securities & Exchange Commission, Nigeria and the National Pension Commission, Nigeria.
The Fund’s Units are listed on the FMDQ OTC Securities Exchange, Nigeria. The Fund has registered a programme for issuance of up to two billion Units with par value of N200 billion. NIDF is sponsored by the Chapel Hill Denham group and Chapel Hill Denham Management Limited act as the Fund Manager of NIDF. The Fund Manager is rated “A” by Augusto & Co.