Oando Jumps 24% as Investors Toast to $550m Oil-Backed Loan Contribution
Nigeria’s leading indigenous energy group Oando Plc became investors toast in the local bourse following notice of $550 million contribution to Nigeria’s oil-backed loan syndication. Data from the Nigerian Exchange showed that the oil company stock rose to N14.6 per share on Friday, up by 23.7% from N11.80 at the beginning of the week.
The surge lifted Oando Plc market valuation to about N181.50 billion based on its 12.431 billion shares outstanding. The company share is trading at 8.75% below its 52 week high.
In a regulatory filing, the indigenous energy group told the Nigerian Exchange that on May 17, 2024, it was party to the successful closure of a US$925 million oil-backed loan deal.
The company said the $925 million accordion was arranged and coordinated by African Export-Import Bank (Afreximbank) for Project Gazelle. It said the accordion arrangement saw a contribution of US$550 million by Oando Trading, a subsidiary of Oando PLC.
Oando added that the balance of $375 million was raised by other parties to get a total disbursement amount of US$925 million to Nigerian government.
The company explained that project Gazelle is a US$3.3 billion structured crude oil-backed forward-sale finance facility sponsored by the Nigerian National Petroleum Company Limited (NNPC Limited).
This landmark US$3.3 billion Afreximbank-arranged financing is the largest syndicated loan ever raised by Nigeria in the international market and one of the largest syndicated debts raised in Africa in recent years.
Speaking on Oando’s participation, Wale Tinubu, Group Chief Executive, Oando PLC said “The successful completion of this facility signifies another win for the company and the country at large.
“The transaction further reinforces Oando’s ability to create value and the Company’s status as the indigenous partner of choice in Nigeria. As a proudly indigenous company our ambition has always been to use our platform to support the sustainable development of the nation.
“Against this backdrop, Project Gazelle will be instrumental in realizing the Federal Government’s efforts to boost the country’s socioeconomic indices. Afreximbank as lead arranger continues to support African corporations – public and private growing confidence in the market and continent.” Jigawa Govt. Releases N32m for Adult Radio Literacy Programme
