…Grows pre-tax profit 2.9% despite falling interest rates, pushes cumulative investor distributions to ₦110 billion and advances a ₦45 billion capital raise to finance new infrastructure projects.
FRI OCT 09 2026-theGBJournal| The Chapel Hill Denham Nigeria Infrastructure Debt Fund (NGX: NIDF) has reported a 2.9% increase in nine-month profit before tax to ₦17.36 billion for the period ended September 30, 2026, demonstrating earnings resilience amid declining interest rates.
The Fund also announced a third-quarter 2026 distribution of ₦4.53 per unit, following approval by its Investment Committee.
The payment represents the Fund’s 38th distribution since inception—comprising 37 quarterly distributions and one special distribution—and brings cumulative distributions to investors to ₦110 billion.
The results underscore NIDF’s continued earnings generation and expanding role in financing Nigeria’s infrastructure development, even as lower benchmark bond yields weigh on returns from infrastructure lending.
Earnings Resilience Amid Lower Interest Rates
NIDF recorded total income of ₦19.13 billion in the first nine months of 2026, representing a 3.7% increase from the corresponding period in 2025.
However, interest income from infrastructure loans declined by 25.5% year-on-year, reflecting sustained reductions in yields on the 10-year Federal Government of Nigeria (FGN) bond.
The daily average yield fell to 16.24% during the nine-month period, compared with 18.16% in the corresponding period last year.
The Fund partly offset the decline through a significant increase in interest income from bank deposits, which rose 224.1% year-on-year to ₦5.1 billion in the nine months ended September 2026.
Despite the changing interest-rate environment, NIDF maintained positive earnings growth, reinforcing its capacity to generate income and sustain distributions to investors.
₦45 billion Capital Raise Targets Infrastructure Financing Pipeline
The third-quarter results come as NIDF advances its Series 12 capital raise, which commenced on September 23, 2026, with a target of ₦45 billion to unlock new investment opportunities and support its existing infrastructure financing pipeline.
The offer represents the Fund’s 12th capital raise since its inception in 2017 and its fourth since listing on the Nigerian Exchange (NGX).
Units are being offered at ₦113.54 each, compared with the NGX closing price of ₦147.70 per unit on October 5, 2026.
This represents a 23.13% discount to the prevailing market price as of that date.
Since inception, NIDF has financed infrastructure projects valued at more than US$625 million, positioning the Fund as a source of long-term capital for commercially viable infrastructure investments in Nigeria.
The Series 12 offer is intended to strengthen the Fund’s capacity to pursue new opportunities while addressing the country’s infrastructure financing needs.
Investors Have Earned 472.22% Return Since Listing
Since its first listing in June 2017, NIDF has delivered a cumulative return of 472.22% on every naira invested, according to the Fund’s performance summary.
The Fund currently offers a dividend yield of 19.64% over the last 12 months, based on net asset value (NAV) per unit.
These performance indicators highlight the Fund’s long-term income-generation record and its continued focus on delivering distributions to investors while financing infrastructure assets.
NIDF maintains that long-term, naira-denominated project finance debt is essential to Nigeria’s economic development.
It says demand for its financing services has increased with each passing year as it continues to position itself as a leading infrastructure investment fund in Nigeria and sub-Saharan Africa.
Its investment strategy focuses on sectors that support Nigeria’s economic development, with an emphasis on infrastructure projects capable of generating commercial returns while delivering broader economic benefits.
Balance Sheet Expands as Infrastructure Investments Grow
NIDF’s financial position remained broadly stable during the nine-month period, with growth in financial assets reflecting additional infrastructure financing disbursements.
Financial assets held at fair value through profit or loss increased 7.3% year-to-date to ₦104.4 billion at the end of September 2026.
Total assets rose 1.1%, from ₦137.3 billion at the end of 2025 to ₦139.2 billion as of September 30, 2026.
Total liabilities also increased modestly, rising 1.0% from ₦7.1 billion to ₦7.2 billion over the same period.
The balance-sheet movements reflect continued deployment of capital into infrastructure-related financial assets, alongside a relatively stable overall financial position.
Portfolio Diversification Broadens Infrastructure Exposure
During the period ended September 30, 2026, NIDF continued to expand and diversify its infrastructure loan portfolio by financing commercially viable projects on attractive terms.
The portfolio currently comprises 17 infrastructure loans spanning seven subsectors, reflecting the Fund’s approach to diversifying exposure across different areas of infrastructure development.
Through its financing activities, NIDF continues to target projects that can generate sustainable financial returns while contributing to Nigeria’s long-term economic growth.
With its latest quarterly distribution, ongoing capital raise and expanding infrastructure financing portfolio, the Fund is seeking to sustain investor income while mobilising additional long-term capital for projects across the country.
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