Oando, Afreximbank sign $800m deal

Oando Plc has signed a $800m deal with the African Export and Import Bank (AFREXIM) at the ongoing Intra-African Trade Fair in Cairo, Egypt to boost the Nigerian oil company’s operation.

The financial package comprises a $500m Senior Secured Reserve Based Lending facility and a $300m Receivables Backed Term Loan facility.

The aim is to fuel a strategic acquisition of a 20 per cent participating interest in the Nigerian Agip Oil Company Limited. This includes Oil Mining Leases 60, 61, 62, and 63, as well as the entire issued share capital of NAOC, acquired from Eni S.A.

The development was announced by IATF in a tweet on its X handle on Wednesday disclosing that the deal was for a syndicated dual facility.

“Afreximbank has signed a US$800M Syndicated Dual Facility deal with Oando! This strengthens Afreximbank’s commitment to empower African institutions and enhance local capacity. A game-changer for Oando, propelling them to new heights in the oil industry!”

AfreximBank, the continental lender disclosed that the move aligns with its commitment to supporting indigenous African institutions.

“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.

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In September, Oando Plc announced that it had reached an agreement with Italian firm, Eni, for the acquisition of 100 per cent of the shares of its oil and gas unit, Nigerian Agip Oil Company Limited.

With this transaction, Oando increases its current participating interests in OMLs 60, 61, 62, and 63 from 20 per cent to 40 per cent.

Oando’s ownership stake in all NEPL/NAOC/OOL Joint Venture assets and infrastructure which include forty discovered oil and gas fields, of which 24 are currently producing, approximately forty identified prospects and leads, twelve production stations, approximately 1,490 km of pipelines, three gas processing plants, the Brass River Oil Terminal, the Kwale-Okpai phases 1 & 2 power plants (with a total nameplate capacity of 960MW), and associated infrastructure, has also increased.

Meanwhile, since the commencement of the IATF holding in Cairo, Egypt, Afreximbank has signed over 10 financing deals with companies across different sectors to facilitate Africa’s growth ambitions.

Some of the deals include a $75m Guarantee Facility with Sterling Bank Plc to reinforce Nigeria’s financial landscape and another N500 Billion Sub-Sovereign Financing Program with Access Bank for Nigerian states under the Africa Sub-Sovereign Network Initiative.

By Babajide Okeowo

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