By Stanley Onyeka, Lagos
African Export-Import Bank (Afreximbank) yesterday announced an additional disbursement of $925 million under the syndicated $3.3 billion crude oil-backed prepayment facility sponsored by the Nigerian National Petroleum Company (NNPC) Limited.
This announcement follows the success of the first accordion tranche of the $3.3 billion facility. In December 2023, the project received funded commitments totaling $2.25 million.
The $925 million accordion arrangement raises the total amount disbursed to $3.175 billion, the bank said in a statement posted on its website.
The fund 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.
Commenting on the disbursement, President and Chairman, Board of Directors, Afreximbank, Benedict Oramah, was quoted as saying: “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. This funding will greatly support the attainment of Nigeria’s short and long-term economic development priorities.”
This 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.
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.
He added that the closure of the first accordion demonstrated the existence of positive market appetite for well-structured commodities-backed instruments.
Group Chief Executive Officer (GCEO), NNPC Limited, Mele Kyari, 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,” Mr. Kyari said.
He further assured Afreximbank and all investing communities of NNPCL’s resolve to continue to grow the nation’s hydrocarbon resources and strengthen its partnerships across the oil and gas value chain locally, and globally.
Arranged and coordinated by Afreximbank, the accordion arrangement saw the raising of a combined total of $925 million from a consortium of crude oil off-taker lenders including but not limited to the Oando Group and Sahara Energy Resource Limited.
Afreximbank acted as Mandated Lead Arranger, Technical and Modelling Bank, Bookrunner, Facility Agent, Offshore Account Bank, Intercreditor Agent and Collateral Agent for the transaction.
