In a significant move at the ongoing Intra-African Trade Fair in Cairo, Egypt, Oando Plc has sealed an $800 million deal with the African Export and Import Bank (Afreximbank). The agreement, announced on IATF’s Twitter handle, encompasses a syndicated dual facility, with a financial package of a $500 million Senior Secured Reserve Based Lending facility and a $300 million Receivables Backed Term Loan facility.
The primary purpose of this substantial financial injection is to facilitate Oando’s strategic acquisition of a 20 percent participating interest in the Nigerian Agip Oil Company Limited (NAOC). 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.
Afreximbank emphasized its commitment to supporting indigenous African institutions, stating that the deal aligns with its dedication to financing transactions that enhance Africa’s trade and empower local companies. The acquisition is considered a pivotal moment for Oando, significantly boosting its production capacity and showcasing Afreximbank’s ability to mobilize capital for robust transactions within its member nations.
Oando had previously announced in September its agreement with Italian firm Eni for the acquisition of 100 percent of the shares of NAOC. With this transaction, Oando increases its participating interests in OMLs 60, 61, 62, and 63 from 20 percent to 40 percent.
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The ownership stake expansion encompasses NEPL/NAOC/OOL Joint Venture assets and infrastructure, including discovered oil and gas fields, production stations, pipelines, gas processing plants, and power plants. The financial support from Afreximbank is seen as a crucial step in propelling Oando to new heights in the oil industry.
This deal is one of over 10 financing agreements signed by Afreximbank during the Intra-African Trade Fair, reflecting the institution’s commitment to facilitating Africa’s growth ambitions across various sectors. The collaboration between Oando and Afreximbank is poised to have a transformative impact on the Nigerian oil and gas landscape, contributing to the nation’s economic development.
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