CIF announces N789.8m H1 distribution as interest income hits N881.8m

The Coronation Infrastructure Fund (CIF) has proposed an interim income distribution of N8.985 per unit for the half-year ended June 30, 2026, translating to approximately N789.78 million payable to its 87.9 million outstanding units.

The proposed distribution, disclosed in a corporate filing with the Nigerian Exchange (NGX) on July 16, represents the latest payout from the infrastructure-focused closed-end debt fund as earnings from infrastructure loans and short-term placements continued to support investor returns.

The distribution will be paid to unitholders whose names appear on the register at the close of business on July 22, subject to applicable withholding tax. The register will close on July 23, while electronic payments are scheduled for July 28.

CIF said payments would be made electronically to eligible unitholders who have completed the E-mandate Form authorising the Registrar to credit their bank accounts directly. Investors yet to complete the process were advised to obtain and submit the E-mandate Activation Form through Coronation Registrars.

The proposed payout comes as the Fund reported N791.5 million in total comprehensive income during the first half of 2026, with interest income remaining the dominant earnings driver.

Interest income rose to N881.8 million, of which infrastructure loans contributed N576.8 million, representing about 65 percent, while income from placements accounted for a further N305 million. Other income added N8 million.

Against this income base, operating expenses stood at N98.3 million, leaving the Fund with an operating profit margin of nearly 90 percent.

Management fees accounted for the largest share of expenses at N74.3 million, or about 76 percent of total operating costs, while administrative and general expenses stood at N16.7 million. The latter included N9.5 million in regulatory fees paid to the Securities and Exchange Commission.

The Fund’s balance sheet also remained largely liquid and conservatively leveraged at the end of the reporting period.

Total assets stood at N9.88 billion, with infrastructure loans and investment securities accounting for N6.37 billion, or approximately 64 percent of the asset base. Cash and bank balances amounted to N3.51 billion, largely held in fixed placements, while other assets were negligible at N444,000.

Total liabilities remained low at N53.3 million, leaving net assets attributable to unitholders at N9.83 billion.

Unitholders’ contributions stood at N8.79 billion, while retained earnings amounted to N2.76 billion. The distribution balance stood at negative N2.52 billion after a negative movement of N800.9 million during the half year, reflecting the Fund’s continuing obligations to distribute income to investors.

The latest proposed payout is lower than the N10.13 per unit distributed for the first half of 2025, which amounted to N890.69 million. CIF subsequently proposed a further N9.10 per unit distribution for the second half of 2025, equivalent to N800.9 million.

Managed by Coronation Asset Management, CIF was established under a N200 billion issuance programme, with its Series 1 raising N8.79 billion through the issuance of 87.9 million units at N100 per unit.

The Fund listed its units on the Nigerian Exchange in 2025 following what was described as the largest capital raise by a locally managed infrastructure fund.

CIF is structured to channel long-term capital into infrastructure-linked loans and securities across targeted sectors of the Nigerian economy. It 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 income-generating investment for institutional and retail investors.

The H1 2026 performance indicates that the Fund continues to rely on infrastructure lending and fixed-income placements for earnings, while maintaining a lean cost structure and minimal leverage to support relatively stable income distributions to unitholders.