LONDON, April 15 Nigeria's Seven Energy said on
Tuesday it had secured $255 million from new backers, including
Singapore state investor Temasek, to help fund its plan
to build up a gas business in the West African country.
Seven Energy, an indigenous Nigerian company, plans to buy
gas fields and related infrastructure and pipelines to sell gas
into Nigeria's domestic market for use in power generation and
industrial consumption. It has already invested $1 billion in
related projects in south-eastern Nigeria.
Temasek invested $150 million alongside contributions from
the International Finance Corporation and the IFC African, Latin
American and Caribbean Fund in Seven's irredeemable convertible,
coupon-less loan notes which the company says are akin to
equity. Together, the new investors would hold 26 percent of the
"These investments are a vote of confidence in Nigeria and
in Seven Energy's vision to be the leading supplier of gas in
the country," Seven Energy Chief Executive Phillip Ihenacho said
in a statement.
The company, which is headquartered in Lagos and London,
sees opportunities for provision of cheap gas in the local
market as a past lack of investment means consumers tend to rely
on much more expensive diesel and fuel oil.
(Reporting by Sarah Young; editing by Tom Pfeiffer)