7th June, 2024
By Ayorinde Oluokun/Abuja
The African Export-Import Bank (Afreximbank) has disbursed an additional $925m under the syndicated $3.3bn crude oil-backed prepayment facility to the Nigerian Government.
Afreximbank, in a statement Thursday said the disbursement brings the total current funded facility size to $3.175bn.
Arranged and coordinated by Afreximbank, the arrangement saw the raising of a combined total of $925m 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 the Mandated Lead Arranger, Technical and Modelling Bank, Bookrunner, Facility Agent, Offshore Account Bank, Intercreditor Agent, and Collateral Agent for the transaction..
Sponsored by the Nigerian National Petroleum Company (NNPC) Limited, the facility is expected to provide further support for Nigeria’s macroeconomic stability and long-term economic growth while enhancing the country’s industrialization and trade development efforts.
The announcement followed the first tranche of the $3.3bn facility disbursed in December 2023.
The fresh $925m arrangement increases the total amount disbursed to $3.175bn.
“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,” President and Chairman of the Board of Directors of Afreximbank Benedict Oramah said while commenting on the arrangement.
He 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.
According to Oramah, the closure of the first accordion demonstrated the existence of positive market appetite for well-structured commodities-backed instruments.
Also, the Group Chief Executive Officer, NNPC Limited Mele Kyari 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,” Kyari said.
The NNPC GMD 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.