Oando Plc just made a massive $800 million deal with the African Export and Import Bank at the Intra-African Trade Fair in Cairo, Egypt. The deal is a big win for Oando, and it’s all about boosting their game in the oil industry. The African Export and Import Bank, also known as Afreximbank, is really stepping up to support African institutions and build up local capacity.
The deal itself is a combo of two financial packages: a $500 million Senior Secured Reserve Based Lending facility and a $300 million Receivables Backed Term Loan facility. The plan is to use this cash to grab a 20 per cent stake in the Nigerian Agip Oil Company Limited, which includes a bunch of oil mining leases and the whole share capital of NAOC, bought from Eni S.A.
Back in September, Oando announced that they were hooking up with Italian company Eni to take over 100 per cent of the shares of its oil and gas unit, Nigerian Agip Oil Company Limited. This move doubles Oando’s current participating interests in OMLs 60, 61, 62, and 63 from 20 per cent to 40 per cent.
And that’s not all – Oando’s ownership stake in all NEPL/NAOC/OOL Joint Venture assets and infrastructure has shot up too. This includes a bunch of oil and gas fields, production stations, pipelines, gas processing plants, and power plants. It’s a serious power move in the oil and gas game.
The Intra-African Trade Fair in Cairo has been a hotbed of action, with Afreximbank sealing over 10 financing deals with companies from different sectors. It’s all part of the plan to fuel Africa’s growth ambitions and make big things happen.