AfreximBank Disburses $925m Oil-Backed Loan to Nigeria
The African Export-Import Bank, AfreximBank, has announced an additional disbursement of US$925 million as part of the syndicated US$3.3 billion crude oil-backed prepayment facility sponsored by Nigerian National Petroleum Company (NNPC) Limited.
According to a statement from the Bank, this brings the total current funded facility size to US$ 3.175 billion. The foreign currency loan was arranged by Afreximbank, the accordion arrangement saw a combined total of US$925 million raised from a consortium of crude oil off-taker lenders, including but not limited to the Oando Group and Sahara Energy Resource Limited.
Afreximbank acted as Mandated Lead Arranger, Technical and modeling Bank, Bookrunner, Facility Agent, Offshore Account Bank, Inter creditor Agent and Collateral Agent for the transaction, which is expected to provide further support for Nigeria’s macroeconomic stability and long-term economic growth while enhancing the country’s industrialisation and trade development efforts.
This announcement follows the success of the first accordion tranche from the US$3.3 billion facility. In December 2023, the project received funded commitments totaling US$2.25 million, Afreximbank said. It noted that the new US$925 million accordion arrangement has now raised the total amount disbursed to US$3.175 billion.
Commenting on the disbursement, Prof. Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank, said: “The milestone achieved thus far, on this facility, demonstrates the Bank’s capabilities in performing its role as a crucial development partner for Africa.
“It reaffirms our commitment to assisting our member states in their efforts to achieve economic growth and stability. This funding will greatly support the attainment of Nigeria’s short- and long-term economic development priorities.”
Prof. Oramah described the original facility as ‘a landmark’ for being the largest crude oil-backed facility in Nigeria and one of the largest syndicated debts raised in Africa, adding that the closure of the first accordion demonstrated the existence of positive market appetite for well structured commodities-backed instruments.
Mele Kyari, Group CEO, NNPC Limited commended Afreximbank Management and team for their investment philosophy and active interest in co-creation of prosperity. “The successful disbursement of the first accordion under project Gazelle and its interest in funding viable and strategic projects is a clear indication of investors’ confidence in NNPCL and Nigeria’s growth aspirations.” Said Mr. Kyari.
He further assured Afreximbank and all investing communities of NNPCL’s resolve to continue to grow the nation’s hydrocarbon resources and strengthen its partnerships across the oil and gas value chain locally, and globally. AfreximBank Disburses $925m Oil-Backed Loan to Nigeria Naira Steadies as Banks Issue Update on FX Purchase
