ChapelHill Denham yesterday launched the first series of its N200 billion Nigeria Infrastructure Debt Fund (NIDF). The fund is reputed as the first-ever listed infrastructure debt fund in Sub-Saharan Africa.
On the fund
The first tranche issued is 49.45 million units at N101.20 per unit. The fund will be invested in critical areas of the economy such as power, energy, and logistics.
It is a close-ended fund and has its investment focus on the traditional infrastructure sectors including transport, power, renewable energy, utilities, energy infrastructure, logistics and other public-private-partnership investments.
The fund aims at giving investors access to infrastructure as an asset class, while providing the benefit of predictable returns available from long-dated infrastructure debt investments.
In addition to it’s substantial size, the fund addresses Nigeria’s biggest problem –infrastructure. The country is estimated to have an over N1 trillion infrastructure gap in areas ranging from roads, power and rail.
Nigeria’s Infrastructural deficit.
Poor state of infrastructure contributes to the high cost of doing business in the country. Private companies have sometimes resorted to self-help as seen with Flour Mills and Dangote group who are collaborating to repair the roads leading to Apapa ports.
The fund will be of immense benefit to the country in several ways. Spending on infrastructure projects mean that contractors will be mobilized – which will in turn create jobs. This would have a multiplier effect on the economy.
Unemployment will reduce and tax revenues will increase for both the federal and state. Cost of doing business in the country, will also falling making Nigeria a more competitive place to do business. Government will also be able to free up funds for other pressing needs.