The Nigeria Sovereign Investment Authority on Wednesday said it was planning to invest massively in the Nigerian Infrastructure Debt Fund being managed by Chapel Hill Denham Nigeria.
The NSIA said this in a statement issued in Abuja and signed by its Communications Adviser, Mr. Titilope Olubiyi.
It, however, did not disclose the amount to be invested, but added that the investment was consistent with its mandate of playing a leading role in sustained economic development for the benefits of Nigeria.
The NIDF is a Nigerian domiciled close-ended fund. It is the first and only domestic currency listed infrastructure debt fund across Africa.
It is focused on mobilising domestic savings, particularly pension funds, life insurance companies, large corporates as well as family office groups for investing in economically critical and financially viable infrastructure assets.
The fund supports traditional infrastructure sectors, primarily transport, power, renewable energy, utilities, energy infrastructure, logistics and other public-private partnership type investments, with naira long-dated senior debt.
The statement said the NIDF was able to support these projects with long-term financing and in the process, would generate superior risk adjusted returns for its investors
Commenting on the investment, the Chief Executive Officer/Managing Director, NSIA, Uche Orji, said, “We are pleased to support the NIDF, as it is consistent with the NSIA’s strategy of enabling Nigeria pension fund participation in infrastructure, makes available long-term naira financing, and is led by a high-quality management team.
“We look forward to working with the NIDF team to ensure that the fund grows through further institutional investor participation and access to high-quality investments.”
The statement also quoted the Chief Executive Officer of Chapel Hill Denham, Mr. Bolaji Balogun, to have said that the fund would direct institutional investments into productive infrastructure assets.
He said, “Mobilisation of domestic currency sources for funding infrastructure is critical for Nigeria, in order to meaningfully bridge the existing infrastructure deficit.
“The NIDF directs institutional investments into productive infrastructure assets, which have a positive development impact, through the multiplier effect on investments, economic growth and well-being of the population.
“The NIDF has the potential to mobilise a meaningful proportion of this requirement by channelling the growing pension and insurance assets as well as other long-term pools of capital into infrastructure investment and financing.”