- Generation of electricity, including from renewable sources, and its transmission and distribution
- Transportation & logistics, including ports, airports, highways, railway transportation, mass transit systems, industrial zones and warehouses
- Infrastructure for provision of telecommunication services including mobile telecom towers, fibre optic networks and data centres
- Storage and transportation facilities for hydrocarbons, including natural gas
- Water treatment, transmission and distribution for domestic, commercial or industrial use, wastewater treatment and water recycling
- Provision of utilities as well as municipal and industrial waste management
- Social infrastructure such as hospitals, schools, training facilities, accommodation and similar facilities, developed primarily on PPP basis.
The investments of the Fund can be directly in infrastructure projects or companies or in special purpose vehicles that are created for the purpose of facilitating such investments. The Fund may also participate in loans to federal or state governments or their agencies for execution of specific infrastructure projects, based on availability of satisfactory credit support. The Fund can also invest in securities issued by owners or lenders of infrastructure projects, including securitised debt and other instruments with similar economic effect.
The Fund may also invest, directly or indirectly, in the working capital loans, subordinated debt, preferred shares or warrants of such borrowers and related assets. At least 80% of Fund’s assets will be invested in senior debt, securitised debt or loans to government agencies. Not more than 20% could be invested in working capital loans, subordinated debt, preferred shares or warrants.
The Fund’s principal focus will be to provide financing in Naira and promote domestic currency financing of long payback infrastructure projects. However, the Fund will also be able to make investments denominated in or linked to United States Dollars (“USD”) where appropriate, particularly in acquiring existing USD loans or where the underlying project has a part or all of its revenues denominated in USD.
In general, the investments to be made by the Fund will have overall tenor of up to twenty years. The Fund's investments may also be for a longer tenor, if merited by the investment framework of the project. The amortisation profiles of these investments will be based on pro-forma cash flows of individual projects. Based on the financial projections, the Fund's investment terms can include a moratorium on repayment of the principal amount for a certain period until the project achieves stable operations.
For greenfield projects, there will be no principal repayment during the construction period, as well as the subsequent early operations. It is expected that the moratorium on principal amortisation for the senior debt investments will be in the range of 12-24 months (excluding the construction period), but the Investment Committee will have the authority to accept a longer amortisation period. The subordinated debt investments to be made by the Fund will likely have a significantly back-ended amortisation schedule.
Current Portfolio
As on 31 June 2023, the portfolio of NIDF comprises twenty-four infrastructure loans aggregating 65 billion Naira. Their sectoral distribution was as follows:
Portfolio Analysis
