NNPC Limited gets additional disbursement of $925 million from Afreximbank
Afreximbank has announced an additional disbursement of US$925 million under the syndicated US$3.3 billion crude oil-backed prepayment facility sponsored by the Nigerian National Petroleum Company (NNPC) Limited. This brings the total current funded facility size to US$ 3.175 billion.
The accordion arrangement, arranged and coordinated by Afreximbank, raised a combined total of US$925 million from a consortium of crude oil off-taker lenders, including the Oando Group and Sahara Energy Resource Limited.
Afreximbank served as Mandated Lead Arranger, Technical and Modelling Bank, Bookrunner, Facility Agent, Offshore Account Bank, Intercreditor Agent, and Collateral Agent for the transaction. This is expected to provide further support for Nigeria’s macroeconomic stability and long-term economic growth, while enhancing the country’s industrialization and trade development efforts.
Following the success of the first accordion tranche of the US$3.3 billion facility, which received funded commitments totaling US$2.25 million in December 2023, the US$925 million accordion arrangement raises the total amount disbursed to US$3.175 billion.
Prof. Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank, commented on the disbursement, stating: “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.”
Prof. Oramah praised the original facility as a significant achievement, being the largest crude oil-backed facility in Nigeria and one of the biggest syndicated debts raised in Africa. He also highlighted that the closure of the first accordion showcased a positive market appetite for well-structured commodities-backed instruments.
Mele Kyari, Group CEO of NNPC Limited, expressed his appreciation for Afreximbank Management and team for their investment approach and active involvement in creating prosperity. He emphasized that the successful disbursement of the first accordion under project Gazelle, along with their interest in funding viable and strategic projects, reflects investors’ confidence in NNPCL and Nigeria’s growth prospects.
Mr. Kyari further reassured Afreximbank and all investing communities of NNPCL’s commitment to expanding the nation’s hydrocarbon resources and enhancing partnerships across the oil and gas value chain both locally and globally.
