The Nigeria Infrastructure Debt Fund recorded a 15.8 percent increase in profit after tax in its half year financial period ended June 30, 2024.
The net profit stood at about N8.37 billion in the review period compared to N7.23 billion posted in the same period in 2023.
The Fund said it will distribute N4.27 per unit to Unit holders who qualify for the return on investment.
“The Fund announced a quarterly distribution – for the second quarter ended 30 June 2024 – of 4.27 Naira per Unit on 11 July 2024 with a qualification date of 18 July 2024. This distribution will be paid to eligible unit holders on July 25, 2024 and is fully funded from the cash inflows generated by the Fund during the quarter,” NIDF said.
NIDF further hinted that it is the intention of the Fund Manager, going forward, to continue paying quarterly distributions to unit holders, in line with the actual performance of the Fund and the provisions of the Constitutional Documents.
The NIDF’s half year investor report made available to the Nigerian Exchange Limited showed that total income increased to about N9.5 billion from N8.06 billion reported in a similar period in 2023, representing 17.9 percent growth year- on- year.
Portfolio summary showed that as at the period ending 30 June 2024, NIDF had a diversified portfolio of 25 investments. The infrastructure loan portfolio had a weighted average annualised yield of 20.6 percent, weighted average tenor at disbursement of 9.2 years, and weighted average remaining life of 4.8 years.
A check on the performance of its investment showed that notwithstanding inflation exceeding 30 percent for the first time since the late 1990s, NIDF is marginally ahead of the Consumer Price Index (CPI).
NIDF continues to consistently outperform its benchmark: the 10-Year FGN bond. The loans are typically priced at 300-450bps over the benchmark on a floating rate basis.
NIDF is the first listed infrastructure debt fund in Nigeria registered with and regulated by the Securities and Exchange Commission, Nigeria, and listed on the NGX and the FMDQ Exchange, Lagos.
It is a closed ended investment trust which operates in the form of a company. NIDF offers the most attractive yield on the NGX and is renowned for paying quarterly distributions.
Its objective is to provide investors with regular, sustained, long-term distributions and to preserve capital over the long-term by generating exposure to Naira-denominated infrastructure debt in Nigeria, which generates regular and predictable long-term cash flows.