The Nigeria Infrastructure Debt Fund (NIDF) is a fund that invests mainly in infrastructure related debt projects. When you buy NIDF, you’re buying units of a fund, not directly lending money like you do with bonds. With Federal Government of Nigeria Bonds (FGN Bonds), you lend money to the governmeRead more
The Nigeria Infrastructure Debt Fund (NIDF) is a fund that invests mainly in infrastructure related debt projects. When you buy NIDF, you’re buying units of a fund, not directly lending money like you do with bonds.
With Federal Government of Nigeria Bonds (FGN Bonds), you lend money to the government for a fixed period, earn interest (coupon), and get your full capital back at maturity.
But with NIDF, there’s no fixed maturity date like a bond. You earn income (dividends) from the fund’s investments, and if you want your capital back, you sell your units on the exchange at the current market price. So your capital redemption depends on the market price at the time you sell not a set repayment date.
How Does NIDF Work and What Is the Capital Redemption Duration Compared to FGN Bonds?
The Nigeria Infrastructure Debt Fund (NIDF) is a fund that invests mainly in infrastructure related debt projects. When you buy NIDF, you’re buying units of a fund, not directly lending money like you do with bonds. With Federal Government of Nigeria Bonds (FGN Bonds), you lend money to the governmeRead more
The Nigeria Infrastructure Debt Fund (NIDF) is a fund that invests mainly in infrastructure related debt projects. When you buy NIDF, you’re buying units of a fund, not directly lending money like you do with bonds.
With Federal Government of Nigeria Bonds (FGN Bonds), you lend money to the government for a fixed period, earn interest (coupon), and get your full capital back at maturity.
But with NIDF, there’s no fixed maturity date like a bond. You earn income (dividends) from the fund’s investments, and if you want your capital back, you sell your units on the exchange at the current market price. So your capital redemption depends on the market price at the time you sell not a set repayment date.
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