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MDGIF Investment Policy Statement

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Applicable to: MDGIF Project Promoters
Equity Partners
MDGIF INVESTMENT POLICY STATEMENT (MIPS)

Code: MDGIF Guide 1001 - 2024

Effective Date: 17th May 2024

This document is a property of the Midstream and Downstream Gas Infrastructure Fund. All rights reserved.
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diligence. This is applicable to MDGIF initiated Projects.
ii.
Procurement and financing: request for qualification & proposal; project information
memorandum & draft agreement development; competitive procurement strategy
development; selection of parties to the project (e.g., O&M operator, EPC
contractor, etc), signing of concession agreement; finalisation of financing
agreements; risk management, etc.
iii.
Delivery and construction: deployment of required inputs for construction and project
delivery; monitoring of delivery team.
iv.
Operations and maintenance: ongoing operations and maintenance of infrastructure
assets.
4.5
Base Currency
MDGIF account and reports shall be produced in both Naira and US dollars components.
4.6
Return Target
4.6.1 Forms of Equity Investment Returns:
a. The MDGIF shall earn adequate returns on its equity investments in infrastructure
related to midstream and downstream gas operations. The return on investment may
accrue to the Fund via any combination of the following; cumulatively the Fund’s
return on investment (ROI):
i.
cash dividend payments being the Fund’s share of profits paid out of the investee
project or company’s free cash flows;
ii.
capital appreciation on the fair value of the Fund’s shareholding or participating
interest in its investee project or company.
4.6.2 Return Benchmark:
a. Benchmark returns on investments in individual projects will be based on reasonable
IRR for target sectors.
b. The MDGIF, however, could make exceptions where there is a clear rationale to
support investments that do not meet the returns benchmarks identified in sections
4.6.2(a) where the following is applicable:
i.
Opportunities for follow-on investments.
ii.
Opportunities to catalyse a new industry or space that could eventually have
outsized returns; or
iii.
Other factors which may contribute to significant long-term economic growth