Afreximbank, two others back Oando’s NAOC purchase with $650m financing
African Export-Import Bank said it arranged a $650 million facility for Oando Plc for the financing of the company’s acquisition of the 20 percent interest held by Nigerian Agip Oil Company Limited (NAOC) in the NEPL/NAOC/Oando Joint Venture.
The fund comprises a senior $500-million and a junior $150-million reserve-based lending facility, according to a statement on Friday.
Afreximbank, retained as mandated lead arranger for the transaction, also served as bookrunner, coordinator, underwriter, escrow agent, facility agent and security trustee, and also participated and underwrote $350 million of the facility.
Also participating in the transaction were Indorama Eleme Petrochemicals Limited, with $150 million, and Mercuria Energy Group, with $150 million, the statement said.
“Oando expects the acquisition to significantly enhance its production capacity from the current 20,000 barrels of oil equivalent per day (kboe/day) to 60,000 kboe/day, effectively boosting Nigeria’s oil output and reinforcing the country’s position in the global energy market. It also expects the transaction to drive local economic growth by creating jobs, improving infrastructure and fostering technological advancements in the oil and gas sector,” it said.
Commenting on the transaction, Haytham Elmaayergi, Executive Vice President, Global Trade Bank, Afreximbank, said that the facility marked a critical step in advancing the Bank’s strategy for promoting local content in Africa’s oil and gas sector.
“By supporting the acquisition of key energy assets by an indigenous company like Oando, the Bank is fostering economic empowerment, enhancing regional trade, and contributing to the sustainable development of Africa’s natural resources,” he said.
He described the transaction as a significant milestone in Nigeria’s upstream oil and gas sector, saying that it underscored the increasing role of local companies in the ownership and operation of critical energy assets, in line with Nigeria’s local content policy, energy security and economic sovereignty strategy.
