Under the syndicated $3.3 billion crude oil-backed prepayment facility sponsored by the Nigerian National Petroleum Company (NNPC) Limited, the African Export-Import Bank (Afreximbank) has announced an additional $925 million payout to the Federal Government.
The development raises the size of the current financed facility to $3.175 billion, according to a statement released by the bank on Thursday. Through the accordion arrangement, which was organized and managed by Afreximbank, a group of crude oil off-taker lenders, including but not limited to the Oando Group and Sahara Energy Resource Limited, raised a total of $925 million.
In relation to the transaction, Afreximbank stated that it served as the Mandated Lead Arranger, Technical and Modeling Bank, Bookrunner, Facility Agent, Offshore Account Bank, Intercreditor Agent, and Collateral Agent. It is anticipated that these roles will strengthen Nigeria’s industrialization and trade development initiatives while also supporting macroeconomic stability and long-term economic growth. The $3.3 billion facility’s first tranche was announced afterward.
The project got funding commitments totaling $2.25 million in December 2023. The $925 million agreement brings the total amount paid out to $3.175 billion. In response to the payment, Afreximbank President and Chairman of the Board of Directors Benedict Oramah stated: “The Bank’s ability to fulfill its position as an essential development partner for Africa is demonstrated by the milestones reached thus far on this facility.
It underscores our dedication to supporting our member states in their pursuit of stability and economic prosperity. The accomplishment of Nigeria’s short- and long-term economic development goals will be substantially aided by this assistance. The first accordion was the largest crude oil-backed facility in Nigeria and one of the largest syndicated debts raised in Africa, according to Oramah, who also called it “a landmark.” The closure of the first accordion showed that there was a market for well-structured commodities-backed instruments.
The Afreximbank Management and team received praise from Group Chief Executive Officer of NNPC Limited Mele Kyari for their investing philosophies and proactive involvement in the co-creation of prosperity. “Investors’ confidence in NNPCL and Nigeria’s growth aspirations is evident in the successful disbursement of the first accordion under project Gazelle and its interest in funding viable and strategic projects,” Kyari stated. He gave additional assurances to Afreximbank and the investing community about NNPCL’s commitment to expanding the country’s hydrocarbon resources and fortifying its alliances both domestically and internationally along the oil and gas value chain.
