Crude Repayment Loan: Afreximbank releases $2.25bn from NNPC’s $3.3bn

The African Export-Import Bank (Afreximbank) has confirmed an initial $2.25 billion disbursement under a syndicated $3.3 billion crude oil prepayment facility sponsored by the Nigerian National Petroleum Company Limited (NNPC).

 According to Afreximbank, the financing agreement not only represents Nigeria’s largest syndicated loan ever raised in the international market but also one of the largest syndicated debts raised in Africa in recent years.

The facility, led by Afreximbank and supported by prominent organizations such as Gunvor International BV, Sahara Energy Resources Limited, and the NNPC, aims to improve Nigeria’s macroeconomic stability and foster long-term economic growth.

 It is expected to facilitate access to raw materials and bolster trade development efforts, thereby contributing to the nation’s overall economic resilience.

The successful closure of this transaction amidst challenging market conditions underscores Afreximbank‘s expertise in structuring complex oil and gas financing facilities.

 Afreximbank played a pivotal role as the solely mandated lead arranger, technical and modeling bank, bookrunner, facility agent, offshore account bank, intercreditor agent, and collateral agent.

The United Bank for Africa Plc (UBA) acted as the local arranger and offshore account bank, further exemplifying the collaborative effort behind the initiative.

The disbursement of the initial $2.25 billion under this facility is poised to play a pivotal role in supporting Nigeria’s long-term economic stability, easing access to import financing for raw materials and essential goods, and bolstering industrialization and trade development efforts.  Naira Rises by 19% as Forex Market Pressures Ease

This injection of funds is a crucial step towards addressing macroeconomic challenges and fostering a more stable economic environment.

The NNPC’s Group Chief Executive Officer, Mr. Mele Kyari, emphasized that the proceeds of the facility have been made available to the federal government as part of a broader effort to enhance macroeconomic stability.

The participation of global, international, and regional syndication firms further underscores the market’s confidence in Nigeria, reflecting solid support for the nation’s economic initiatives. Afreximbank provides First Bank with a $150 million loan to help businesses.