NSIA grows NBET’s investment fund by $67.4m in 4years
The Nigeria Sovereign Investment Authority, NSIA, said it has paid a total sum of $417.46 million to the Nigeria Bulk Energy Trading Company from an initial capital of $350million, following the expiry of the four years investment term.
A statement from the agency explained that the returned funds consisted of the principal sum of $350million allocated to the NSIA from the proceeds of the $1billion Eurobond issued by the Federal Government in July 2013 under a fund management agreement and the sum of $67.46million (net of fees) as interest and earnings over the investment period.
According to the NSIA, the payment was made in three tranches with an initial transfer of $8million made in May 2016, then a $5.5million paid in August 2016 and lastly the sum of $403.96million refund made in July 2018.
Speaking on the development, the Managing Director and Chief Executive Officer of NSIA, Mr. Uche Orji, stated that the authority had accomplished its goal of “enhancing NBET’s liquidity position while enabling the company to focus on its principal function of developing the electricity market.
He said, “The NSIA’s role as fund manager helped to safeguard NBET’s capital against market volatility and conferred the agreed financial benefits on the company.”
Also commenting on the transfer, the Managing Director/Chief Executive Officer, NBET, Dr Marilyn Amobi, said the company was pleased with the management of the fund over the last four years.
Amobi said, “The NSIA as a competent fund manager preserved the capital; thus, helped to promote NBET’s credit worthiness as an off-taker for grid injected electric energy in the Nigerian Electricity Supply Industry.”
The NSIA is a corporate body established by the Nigeria Sovereign Investment Authority Establishment Act 2011 and mandated to manage funds in excess of budgeted hydrocarbon revenues.