FMDQ lists pioneer Infrastructure Debt Fund
By Nkiruka Nnorom
FMDQ OTC Securities Exchange Plc has admitted Chapel Hill Denham’s N200 billion Nigeria Infrastructure Development Fund, NIDF, for trading on its platform.
Following the approval by the Securities and Exchange Commission, SEC, Chapel Hill Denham Management Limited registered and established the N200 billion NIDF issuance programme. Consequently, the series-I comprising 49.45 million units of N101.20 each was issued under the programme.
The Fund, the first of its kind in Nigeria, is a close-ended fund and has its investment focus on the traditional infrastructure sectors, primarily transport, power, renewable energy, utilities, logistics and other public-private-partnership investments. The Fund aims at enabling investors to access infrastructure as an asset class, while providing the benefit of predictable returns available from long-term infrastructure debt investments.
Speaking at the listing, Ms. Tumi Sekoni, Vice President, Marketing & Business Development at FMDQ, commended the NIDF Manager for achieving the milestone, adding that mobilisation of domestic funding for infrastructure was immense progress in the right direction.
According to her, the FMDQ Listings & Quotations service has been tailored to provide issuers as well as fund managers, with an avenue to improve the credibility of debt securities issuances. Mr. Bolaji Balogun, Managing Director, Chapel Hill Denham, in his keynote address, said: “Infrastructure funding has been a major investment theme in our firm over the last decade. We are very proud of this pioneering role and NIDF is a natural fit with our commitment to developing Nigeria and Africa’s productive infrastructure.
“The progressive regulatory environment in Nigeria, which enabled NIDF to be conceptualised, reaffirms the forward-thinking approach of PenCom, SEC and FMDQ. Infrastructure debt provides a uniquely attractive combination of long term, stable, predictable income and a yield higher than that available from government bonds.” Mr. Bola Onadele. Koko, Managing Director/CEO, FMDQ, also called on the federal government to unlock the potentials of the nation’s economy by facilitating private sector funding for infrastructural development.