Oando Plc just signed a massive $800 million deal with the African Export and Import Bank (Afreximbank) at the Intra-African Trade Fair in Cairo, Egypt. The deal is aimed at boosting Oando’s operations in the Nigerian oil industry. The financial package includes a $500 million Senior Secured Reserve Based Lending facility and a $300 million Receivables Backed Term Loan facility.
The main goal of this deal is to support Oando’s strategic acquisition of a 20 per cent participating interest in the Nigerian Agip Oil Company Limited, which includes Oil Mining Leases 60, 61, 62, and 63, as well as the entire issued share capital of NAOC, acquired from Eni S.A.
The announcement of this development was made by IATF in a tweet on Wednesday, revealing that the deal was for a syndicated dual facility. Afreximbank’s commitment to empower African institutions and enhance local capacity was highlighted in the tweet, stating that this deal is a game-changer for Oando, propelling them to new heights in the oil industry.
Afreximbank, the continental lender, emphasized that this move aligns with its commitment to supporting indigenous African institutions. The facility underscores their dedication to financing transactions that not only boost Africa’s trade but also empower local companies by transferring capacity from foreign institutions to African hands.
In September, Oando Plc announced an agreement with Italian firm, Eni, for the acquisition of 100 per cent of the shares of its oil and gas unit, Nigerian Agip Oil Company Limited. With this transaction, Oando increases its current participating interests in OMLs 60, 61, 62, and 63 from 20 per cent to 40 per cent. Oando’s ownership stake in all NEPL/NAOC/OOL Joint Venture assets and infrastructure has also increased significantly.
Since the commencement of the IATF holding in Cairo, Egypt, Afreximbank has signed over 10 financing deals with companies across different sectors to facilitate Africa’s growth ambitions. Some of the deals include a $75 million Guarantee Facility with Sterling Bank Plc to reinforce Nigeria’s financial landscape and another N500 Billion Sub-Sovereign Financing Program with Access Bank for Nigerian states under the Africa Sub-Sovereign Network Initiative.