Oando PLC, a Nigerian indigenous energy group says it was party to the successful closure of a US$925m loan arranged and coordinated by African Export-Import Bank (Afreximbank) for Project Gazelle.
The accordion arrangement saw a contribution of US$550m by Oando Trading, a subsidiary of Oando PLC.
The balance $375m was raised by other parties to get a total disbursement amount of US$925m.
Project Gazelle is a US$3.3 billion structured crude oil-backed forward-sale finance facility sponsored by the Nigerian National Petroleum Company Limited (NNPC Limited).
This landmark US$3.3bn Afreximbank-arranged financing is the largest syndicated loan ever raised by Nigeria in the international market and one of the largest syndicated debts raised in Africa in recent years.
Speaking on Oando’s participation, Wale Tinubu, Group Chief Executive, Oando PLC said “The successful completion of this facility signifies another win for the company and the country at large. The transaction further reinforces Oando’s ability to create value and the Company’s status as the indigenous partner of choice in Nigeria. As a proudly indigenous company our ambition has always been to use our platform to support the sustainable development of the nation. Against this backdrop, Project Gazelle will be instrumental in realizing the Federal Government’s efforts to boost the country’s socioeconomic indices. Afreximbank as lead arranger continues to support African corporations – public and private growing confidence in the market and continent.”
In August last year, the NNPC said it had secured the crude oil repayment loan from the Cairo-based bank that will support the government’s reforms to stabilise the exchange rate market.
AfreximBank stated that investors were keen to consider ticket sizes of $250 million and $500 million amid current headwinds.
The five-year facility, it said, carries a margin of 6.0 per cent per annum above the three-month Secured Overnight Financing Rate (SOFR).
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