Chapel Hill Denham lists infrastructure debt fund on NGX

Chapel Hill Denham, a prominent financial institution, has made a significant move by listing its Nigerian Infrastructure Debt Fund (NIDF) on the Nigerian Exchange (NGX). In a recent interview on CNBC Africa, Bolaji Balogun, the Chief Executive Officer of Chapel Hill Denham, and Temi Popoola, the Chief Executive Officer of the Nigerian Exchange, discussed the implications and significance of this listing for the investment landscape in Nigeria. This move marks a significant development as NIDF, with a nine-year history, had previously been accessible only to institutional investors. However, with a successful track record of 25 consecutive distributions and impressive returns for investors, the decision to broaden the investor base to include retail investors is a strategic one. By making infrastructure investments accessible to a wider range of investors, Chapel Hill Denham aims to democratize access to this asset class and drive sustainable growth in Nigeria. The key theme of this discussion centered around the importance of listing the NIDF on the NGX and its significance in expanding investment opportunities in Nigeria. Bolaji Balogun highlighted the success and credibility of the fund, with zero Non-Performing Loans (NPLs) over the past seven years and impressive total returns of over 155 percent. This listing not only signals the potential for retail investors to participate in infrastructure investments but also underscores the role of capital markets in supporting the government's infrastructure financing agenda. Three key points emerged from the interview. Firstly, the listing of NIDF on the NGX opens up the retail investor universe to an asset class traditionally dominated by institutional investors, thereby de-risking the investment and providing retail investors with an avenue for participation. Secondly, the innovative nature of this listing showcases the potential for new product development within the capital markets, offering investors diverse investment opportunities beyond traditional equity classes. Lastly, the asset allocation strategy of Chapel Hill Denham focuses on financing a range of infrastructure projects, including traditional infrastructure, social infrastructure, and private sector projects, reflecting a diverse and robust investment portfolio. Balogun discussed the next phase for the NIDF, emphasizing the need for scalability to meet Nigeria's growing infrastructure demands. With plans to raise capital biannually and expand market capitalization, Chapel Hill Denham aims to capitalize on Nigeria's multi-trillion Naira infrastructure opportunities annually. This strategic approach aligns with the country's infrastructure development needs and underscores the role of domestic capital in driving sustainable growth. In addition to discussing investment opportunities, Balogun and Popoola addressed the importance of investor education in navigating new asset classes like infrastructure debt funds. Both emphasized the need for collaborative efforts between stakeholders to educate investors, leveraging platforms like the NGX's Ex Academy and informational events to disseminate knowledge and promote informed investment decisions. By fostering a culture of education and collaboration, Chapel Hill Denham and the NGX are paving the way for greater investor participation and engagement in Nigeria's evolving investment landscape. In conclusion, the listing of Chapel Hill Denham's Nigerian Infrastructure Debt Fund on the NGX represents a significant milestone in expanding access to infrastructure investments in Nigeria. By targeting retail investors, diversifying investment opportunities, and prioritizing investor education, Chapel Hill Denham and the NGX are driving innovation and growth in the country's financial ecosystem. This listing sets a precedent for future investment opportunities and underscores the transformative power of infrastructure financing in driving economic development and sustainability in Nigeria.