Oando Plc, an integrated energy solutions provider led by Nigerian oil magnate Wale Tinubu, completed its $783-million acquisition of Nigerian Agip Oil Company (NAOC) with financing from the African Export-Import Bank (Afreximbank).
In a press release issued on Aug. 23 , Afreximbank detailed that it arranged a senior $500-million and a junior $150-million reserve-based lending facility for Oando to facilitate the acquisition. The funds were also allocated towards acquiring a 20 percent participating interest in the NEPL/NAOC/Oando Joint Venture, which holds significant oil and gas assets. This venture has historically produced 4.4 billion barrels of oil and 12 trillion cubic feet of natural gas, with considerable reserves still available.
Afreximbank leads $650 million facilityAfreximbank acted as the mandated lead arranger, bookrunner, coordinator, underwriter, escrow agent, facility agent, and security trustee for the transaction, contributing $350 million to the facility. Indonesian businessman Sri Prakash Lohia's Indorama Eleme Petrochemicals and Swiss businessman Daniel Jaeggi's Mercuria Energy Group also participated, each providing $150 million.
Haytham Elmaayergi, Executive Vice President of Afreximbank, described the facility as a significant step in the Bank's strategy to promote local content in Africa's oil and gas sector. "This acquisition supports economic empowerment, enhances regional trade, and contributes to the sustainable development of Africa's natural resources," he said.
