According to Nigerian Finance Minister Ngozi Okonjo-Iweala, Nigeria is planning to sell US$1 billion worth of Eurobonds. The proceeds would be used to finance the construction of power plants.
The announcement was made after meetings were conducted with international investors during the minister's attendance at the World Economic Forum on Africa. The securities would be denominated on the US dollar and would be the second time that the country would be tapping world markets.
The African continent's largest oil producer was riding the crest of high investor interest for assets that produce high yields. The purpose of the bond issue is to raise funds to allow an increase in electricity output where the country's demand is twice the available supply which stands at 4,000 megawatts.
Okonjo-Iweala said, "Preparations are going full steam ahead. We need US$10 billion a year in investment in infrastructure in Nigeria in order to keep up with the needs of the country."
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