Ayodeji Ayenuwa
At the Intra-African Trade Fair, Oando PLC, a prominent Nigerian energy solutions provider, clinched an $800 million loan from AfreximBank.
The financial arrangement is intended to fund Oando’s acquisition of the Nigerian Agip Oil Company (NAOC), which involves acquiring a 20% participating interest in NAOC, spanning specific Oil Mining Leases (OMLs 60, 61, 62, and 63).
This development follows Oando’s earlier announcement of a deal with the Italian multinational energy company Eni for the complete acquisition of shares in NAOC.
Wale Tinubu, CEO of Oando, emphasized the significance of this move, stating, “The synergies created by this acquisition will unlock unparalleled opportunities for us to realign expectations, enhance efficiency, optimize resource allocation, and significantly increase production.”
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Pending approval from regulatory bodies, Oando’s existing 20% stake in OMLs 60, 61, 62, and 63 is set to increase to 40%, solidifying its presence in various joint venture assets, which encompass a range of oil and gas fields, production stations, pipelines, and power plants.
AfreximBank’s financial package, consisting of a $500 million Senior Secured Reserve Based Lending facility combined with a $300 million Receivables Backed Term Loan facility, signifies a significant commitment to supporting indigenous African institutions.
This syndicated dual facility not only supports Oando’s acquisition but also aligns with AfreximBank’s broader mission of boosting Africa’s trade and empowering local companies.
“The facility underscores our dedication to financing transactions that not only boost Africa’s trade but also empower local companies by transferring capacity from foreign institutions to African hands,” noted AfreximBank in a statement.
Beyond the financial aspects, the collaboration revealed at the Intra-African Trade Fair signifies a commitment to fostering growth and strengthening partnerships across borders for Africa’s collective development.
Since the launch of the Intra-African Trade Fair, AfreximBank has been proactive, signing over 10 financing deals with companies across various sectors, showcasing unwavering support for Africa’s growth ambitions.
Techrectory with Agency Report.
