Coronation Infrastructure Fund posts 23.3% return, plans fresh capital raise in 2026

CORONATION Asset Management Limited says its Coronation Infrastructure Fund delivered a 23.27 percent annualised return in 2025 as the fund transitioned from capital deployment to active income generation during its first full year of operations.

According to the fund’s 2025 annual report, total assets under management rose to N9.9 billion by December 31, 2025, while the fund distributed more than N1.72 billion to investors through two semi-annual payouts made in January and July.

The fund, which is listed on the Main Board of the Nigerian Exchange Limited (NGX), said its performance was largely driven by interest income from investments in the energy and transportation sectors.

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Managing Director of Coronation Asset Management, Mr Aigbovbioise Aig-Imoukhuede, said the fund benefited from Nigeria’s improving macroeconomic environment, including foreign exchange (FX) liberalisation reforms, declining inflationary pressures, stronger external reserves, and improved investor sentiment.

He also cited Nigeria’s removal from the Financial Action Task Force grey list, sovereign credit rating upgrades, and reforms under the Tax Act 2025 as factors that improved the operating environment for infrastructure investors.

The report disclosed that the fund has a committed investment pipeline exceeding N64 billion across 6 sectors, including energy, transportation, utilities, telecommunications, social infrastructure, and real estate, with more than 40 projects currently under evaluation.

Coronation Infrastructure Fund said it invested N5 billion into two infrastructure projects in 2025, including a 30MW gas-fired embedded power plant in Victoria Island, Lagos, and a transportation and logistics project involving the acquisition of 300 trucks.

According to the report, the power project is expected to help phase out about 30,000 diesel generators in Victoria Island while improving energy reliability for businesses and reducing emissions.

The transportation project, meanwhile, is projected to move about 550,000 tonnes of goods monthly and create nearly 7,800 direct and indirect jobs nationwide.

The fund also revealed that pension fund administrators currently account for 42 percent of its investor base, following reforms by the National Pension Commission (PenCom) allowing pension funds to allocate up to 25 percent of their portfolios to infrastructure funds.

Looking ahead, Head of Coronation Infrastructure Fund, Mayowa Ikotun, said the fund plans to deepen capital deployment and diversify investments in 2026 while pursuing two additional capital raises scheduled for the second and fourth quarters of the year.

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The fund said the planned Series 2 and Series 3 issuances would target institutional investors including pension funds, insurance firms, development finance institutions, and other qualified investors.

Despite the strong performance, the report acknowledged that infrastructure investments remain exposed to execution risks, regulatory bottlenecks, and counterparty delays, noting that the fund would maintain a disciplined approach to project selection and deployment.

Operating profit for the year rose to N1.95 billion in 2025 from N705.7 million in 2024, while interest income climbed to N2.08 billion from N1.19 billion a year earlier.