Afreximbank completes upsizing of Oando’s $375m facility

African Export-Import Bank (Afreximbank) (www.Afreximbank.com) announces the successful completion of the upsizing of its reserve-based lending facility provided to Oando Oil Limited, increasing the facility amount to US$375 million. Oando Oil Limited’s repayment of the original US$525 million facility, initially secured in 2019, reducing the outstanding balance to US$100 million by 2024, created substantial capacity for refinancing and enhancing the company’s financial flexibility.

The expanded facility, led by Afreximbank with support from Mercuria Asia Resources PTE Limited (Mercuria), represents a significant milestone in Oando’s strategic capital management. It is designed to support Oando’s objective of achieving production targets of 100,000 barrels of oil per day and 1.5 billion cubic feet of gas per day by the close of 2029. This expansion is expected to contribute significantly to Nigeria’s overall oil output and strengthen the nation’s standing in the global energy market. Furthermore, the upsizing is anticipated to stimulate local economic growth through job creation, infrastructure development, and the advancement of technology within the oil and gas sector.

Official Statements Regarding the Upsizing:

Commenting on the development, Wale Tinubu, Group Chief Executive, Oando PLC and Executive Chairman, Oando Energy Resources, stated: “We are pleased to have completed the upsizing of our RBL facility, a strategic milestone that reinforces our commitment as Operator of the Oando-NEPL JV to maximizing the value of our expanded asset portfolio. Our Joint Venture holds extensive reserves with the potential to generate over $11 billion in net cash flows to Oando over the assets’ life. This working capital facility is a critical enabler towards efficiently extracting and monetizing these resources. We appreciate the continued partnership of Afreximbank and Mercuria, whose unwavering support underscores their alignment with our long-term focus on maximizing production, optimizing asset performance, and delivering sustainable value to all stakeholders”.

Commentary from Mr. Haytham Elmaayergi, Executive Vice President, Global Trade Bank at Afreximbank, highlighted that the transaction represents a critical step in advancing Afreximbank’s strategy to promote local content development within Africa’s oil and gas sector. He added:

“Afreximbank remains a longstanding financial partner to Oando PLC and its affiliates and has consistently supported the company’s growth and expansion initiatives. We are delighted that Mercuria, one of the world’s largest independent energy and commodities groups and one of our partners, has brought its global expertise and financial backing to the transaction, further strengthening Oando’s ability to execute its production growth strategy.”