Dhivehi Investment Nafaa Fund launches MVR 40 million tranche after first issuance closes

The Dhivehi Investment Nafaa Fund has launched a new MVR 40 million tranche called DHINAF-48, after its initial issuance reached its target subscription amount, the fund said in a press release on Tuesday.

The first tranche, DHINAF-36, closed after reaching its targeted MVR 20 million.

DHINAF is an open-ended investment fund registered with the Capital Market Development Authority. The fund describes itself as the first Maldivian investment vehicle dedicated to short-duration investments. It pools capital from institutional and qualified investors into a single managed portfolio.

The fund invests primarily in tourism, real estate, infrastructure and trade finance. It targets projects with maturities of less than five years.

According to the press release, the fund has exceeded its target benchmark since inception. That benchmark is the MVR 365-day Treasury Bill rate plus 10 percent, which the fund said equals 14.6 percent per year. The fund said all investor distributions had been paid on time to date.

The new tranche offers five instruments. These range from 10.50 percent per year for a six-month maturity to 12.25 percent per year for a four-year maturity. The four-year option extends the fund's maturity range from the previous issuance.

The fund said it had maintained these rates on the strength of a pipeline of higher-returning opportunities it had identified. It said rates on future tranches may be set slightly differently.

Subscriptions opened on 24 June and are limited to institutional and qualified investors. The minimum investment is MVR 50,000.

Dhivehi Investment Partners, a CMDA-licensed investment management and advisory firm, serves as the fund manager. The firm previously acted as lead arranger and principal advisor on the FEDO bond, which it described as the first issuance by a Maldivian construction company.