CIF announces ₦789.78m H1 distribution on strong infrastructure returns

By Reporter

The Coronation Infrastructure Fund (CIF) has declared a semi-annual distribution of ₦8.985 per unit for the half-year ended June 30, 2026, amounting to a total payout of approximately ₦789.78 million to holders of its 87.9 million outstanding units.

The announcement was made in a corporate filing submitted to the Nigerian Exchange (NGX) on July 16 in accordance with Section 25 of the Fund’s Programme Trust Deed.

According to the filing, unitholders whose names appear on the register at the close of business on July 22, 2026, will qualify for the distribution, subject to applicable withholding tax. The register will close on July 23, while electronic payments will commence on July 28.

The Fund said the distribution would be credited directly to the bank accounts of eligible unitholders who have completed the E-mandate registration with Coronation Registrars. Investors yet to activate their e-mandate have been advised to download and submit the E-mandate Activation Form through the Registrar to facilitate payment.

The proposed H1 2026 distribution reflects continued earnings from the Fund’s infrastructure-focused investment portfolio.

CIF’s interim financial statements for the six months ended June 30 show that the Fund generated ₦791.5 million in total comprehensive income, driven largely by interest income from infrastructure-linked investments.

Interest income rose to ₦881.8 million, with infrastructure loans contributing ₦576.8 million, representing about 65 per cent of total interest earnings. Income from fixed placements contributed ₦305 million, while other income added ₦8 million.

Operating expenses remained modest at ₦98.3 million, resulting in an operating profit margin of nearly 90 per cent.

Management fees accounted for ₦74.3 million, or about 76 per cent of operating expenses, while administrative and general expenses totalled ₦16.7 million, including ₦9.5 million paid as regulatory fees to the Securities and Exchange Commission (SEC).

The Fund closed the first half of 2026 with total assets of ₦9.88 billion.

Infrastructure loans and investment securities accounted for ₦6.37 billion, representing about 64 per cent of the asset base, while cash and bank balances stood at ₦3.51 billion, largely held in fixed placements, reflecting a strong liquidity position.

Total liabilities remained low at ₦53.3 million, underscoring the Fund’s conservative leverage profile.

Net assets attributable to unitholders stood at ₦9.83 billion at the end of the reporting period.

Unitholders’ contributions remained at ₦8.79 billion, while retained earnings rose to ₦2.76 billion.

The Fund reported a distribution balance of negative ₦2.52 billion, following a movement of negative ₦800.9 million during the period, reflecting ongoing distributions to investors.

Managed by Coronation Asset Management, the Coronation Infrastructure Fund is a closed-end debt fund established to finance infrastructure projects through long-term investments in infrastructure loans and securities across strategic sectors of the Nigerian economy.

The Fund was launched under a ₦200 billion issuance programme, with its Series 1 offer raising ₦8.79 billion through the issuance of 87.9 million units at ₦100 per unit. It was subsequently listed on the Nigerian Exchange in 2025 after what was described as Nigeria’s largest capital raise by a locally managed infrastructure fund.

The H1 2026 results highlight the Fund’s ability to generate stable returns from infrastructure lending and short-term placements while maintaining a disciplined cost structure and minimal leverage.

For the first half of 2025, the Fund distributed ₦10.13 per unit, equivalent to ₦890.69 million, before proposing a further ₦9.10 per unit distribution for the second half of the year, amounting to ₦800.9 million.

CIF targets returns of approximately 300 basis points above the yield on the benchmark 10-year Federal Government of Nigeria bond, positioning it as an alternative investment vehicle for institutional and retail investors seeking stable, infrastructure-backed income.