The International Finance Corporation will launch a $1 billion local currency bond programme in Nigeria that will allow it to issue debt regularly to fund infrastructure and other development projects, it said on Wednesday.
The IFC, the World Bank’s private sector arm, said the programme would help deepen domestic capital markets in Africa’s second-biggest economy and support private sector development.
Proceeds will provide long-term naira funding for infrastructure, especially power.
The IFC issued its $75 million debut Nigeria local currency bond at a yield of 10.2 percent in February, the first of several planned African local currency bonds, including in South Africa, Ghana, Zambia, Rwanda, Namibia, Botswana, Uganda, Kenya and the West African CFA franc bloc.
The aim is to provide financing for small and medium sized enterprises that often struggle to raise funding in commercial banks, the IFC says.
Speaking at a conference on debt in Nigeria on Wednesday, IFC Vice President of Treasury and Syndications Jingdong Hua said its financing commitments to Nigeria would amount to $1.5 billion this year, or roughly 30 percent of its $5.3 billion African portfolio for 2013.
The IFC’s total African investments had grown to that figure from “less than $200 million nine years ago,” he said.
“That shows our commitment to Africa and also the tremendous opportunities the continent is providing to investors,” he said.
Read more at Reuters
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