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Pecora Capital aims to raise $2bn for Nigerian infrastructure

Reuters
June 15, 2016, midnight
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Word count: 283

Pecora Capital, a US based global macro investment management firm, has announced its intentions to raise $2bn over the next 18 months for Nigerian infrastructure projects.

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Pecora Capital, a US based global macro investment management firm, has announced its intentions to raise $2bn over the next 18 months for Nigerian infrastructure projects.

"As a long-term investor we see a time of crisis as an opportunity," Aaron Smith, Managing Director of Pecora, told Reuters.

He expects the fund to achieve returns of 25% a year over its 7-year lifespan.

Nigeria is the largest and fastest growing economy in Africa as well as the largest population in Africa.

The country still relies on oil exports for around 90% of foreign exchange earnings and 70% of government revenues.

Nigerian President Muhammadu Buhari is trying to attract foreign direct investment to help support an economy that slipped into contraction in the first quarter this year as lower oil prices hammered Africa's largest crude exporter.

A string of attacks on oil pipelines by militants in the restive Niger Delta has compounded Nigeria's economic problems and many investors have complained about the poor current business environment.

"I understand that is a concern and we've thought about it but we definitely don't foresee over the timeframe we've set out that we'll have any problems getting money out of the country," Smith said.

"The fundamentals and demographics in Nigeria, in terms of population, in terms of infrastructure deficits, all offer huge opportunity and the availability of high returns," he added.

According to Smith, areas of possible investment include agriculture, telecommunications and transport

He added that the fund hopes to take advantage of the huge demand for improved infrastructure in a country of around 190 million people.

The Nigerian fund will be based in the Cayman Islands and hopes to attract investment from the US, Asia and Europe.

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