from OKORO CHINEDU in Lagos, Nigeria
Nigeria Bureau
LAGOS, (CAJ News) – NIGERIA is set to grow its hydrocarbon resources in strengthening its oil and gas value chain locally and globally following a whopping US$925 million cash injection from the African Export-Import Bank (Afreximbank).
Africa’s largest oil producer desperately needed the cash to boost its oil and gas industry.
Afreximbank President and Chairman of the Board of Directors, Benedict Oramah, said the bank had syndicated business totaling US$3.3 billion crude oil-backed prepayment facility sponsored by the Nigerian National Petroleum Company (NNPC) Limited.
“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,” Oramah said.
He said the Afreximbank acted as Mandated Lead Arranger, Technical and Modelling Bank, Bookrunner, Facility Agent, Offshore Account Bank, Intercreditor Agent and Collateral Agent for the transaction which is expected to provide further support for Nigeria’s macroeconomic stability and long-term economic growth while enhancing the country’s industrialisation and trade development efforts.
“This funding will greatly support the attainment of Nigeria’s short and long-term economic development priorities,” Oramah said.
This announcement follows the success of the first accordion tranche of the US$3.3 billion facility.
In December 2023, the project received funded commitments totaling US$2.25 million. The US$925 million accordion arrangement raises the total amount disbursed to US$3.175 billion.
Prof. Oramah 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, adding that the closure of the first accordion demonstrated the existence of positive market appetite for well structured commodities-backed instruments.
Mele Kyari, Group CEO, NNPC Limited 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.” Said Mr. Kyari.
– CAJ News