FMDQ lists Pioneer’s N200bn infrastructure debt fund in sub-Saharan Africa

The FMDQ Board Listings, Markets and Technology Committee, following a very swift and efficient application process, has granted approval for listing on the platform of FMDQ OTC Securities Exchange, the Nigerian Infrastructural Debt Fund (NIIDF) – the Chapel Hill Denham Nigeria Infrastructure Debt Fund Series I49,450,000 Units of ₦101.20 each, under the ₦200,000,000,000.00 Issuance Programme.

The Fund, registered by the FMDQ on 14th July, 2017, 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, thereby supporting infrastructural development in Nigeria.

The Fund aims to enable investor’s access infrastructure as an asset class, while providing the benefit of predictable returns available from long-dated infrastructure debt investments.

The registration was sequel to successfully securing the Securities and Exchange Commission’s (SEC) approval by Chapel Hill Denham Management Limited, which has registered and established the Nigeria Infrastructure Debt Fund (NDIF) ₦200,000,000,000.00 Issuance Programme, and subsequently issued the first series under this Programme – Series I 49,450,000 Units of ₦101.20each.

The NIDF – the Chapel Hill Denham Nigeria Infrastructure Debt Fund Series I49,450,000 Units of ₦101.20 each, under the ₦200,000,000,000.00 Issuance Programme – following a very swift and efficient application process, was granted approval on July 14, 2017, by the FMDQ Board Listings, Markets and Technology Committee, to be listed on the platform of FMDQ OTC Securities Exchange (FMDQ or the OTC Exchange).

To celebrate the fund’s listing on the FMDQ, a significant listing Ceremony was held at the offices of the OTC Exchange on Monday, July 17, 201 and the OTC market lauded Chapel Hill Denham’s efforts in leveraging the Nigerian Debt Capital Market (DCM) to advancing Nigeria’s infrastructural development.

Ms. Tumi Sekoni, Vice President, Marketing & Business Development at FMDQ, commended the Nigeria Infrastructure Debt Fund and Fund Manager for achieving this milestone, noting that mobilisation of domestic funding for infrastructure was immense progress in the right direction for the Nigerian economy, and choosing to list the Fund on FMDQ was in consonance with this progress.

Sekoni added that the FMDQ Listings/Quotations service has been tailored to provide issuers as well as Fund Managers, an avenue to improve the credibility of debt securities issuances, thereby gaining from the substantial and indispensable benefits, including but not limited to, transparency, capital access, price formation and visibility, which such listings/quotations on FMDQ guarantee.

Mr. Bolaji Balogun, the CEO, Chapel Hill Denham Group & Chief Investment Officer, the Nigeria Infrastructure Debt Fund, 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.”

“NIDF aims to provide investors regular and stable income.” said Philip Southwell, Chairman of NIDF’s Investment Committee “by making debt investments in Nigerian infrastructure projects. The market opportunity is huge in Nigeria not only because of the size of the pension fund assets available for investment in NIDF, but also by the number of high quality, investable projects.”

According to Mr. Anshul Rai, the Chief Executive Officer of NIDF, “Project owners looking for long-dated infrastructure debt now have a reliable partner in the NIDF. Also, by funding in Naira, the NIDF removes currency risk, for both investors and borrowers alike, and that helps make Nigerian infrastructure a much safer place to invest.”

Mr. Bola Onadele. Koko, Managing Director/CEO of FMDQ, called on governments to unlock the potential of the Nigerian economy by facilitating private sector funding for infrastructure.

He encouraged government reforms and regulation to position key sectors to be commercially viable to galvanise huge capital to infrastructure. Mr. Onadele stated also, 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.