Oando Plc has announced the successful closure of a $925m accordion arranged and coordinated by African Export-Import Bank (Afreximbank) for Project Gazelle. The accordion arrangement saw a contribution of $550m by Oando Trading, a subsidiary of Oando Plc. The balance $375m was raised by other parties to get a total disbursement amount of $925m. Project Gazelle is a $3.3 billion structured crude oil-backed forward-sale finance facility sponsored by the Nigerian National Petroleum Company Limited (NNPC Limited).
The $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, Group Chief Executive, Oando Plc, Wale Tinubu, 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 realising the Federal Government’s efforts to boost the country’s socio-economic indices. Afreximbank as lead arranger continues to support African corporations – public and private growing confidence in the market and continent.” One of the key reasons given for the novel Project Gazelle was its ability to avail the Federal Government in the immediate to medium term with access to the funding for investments in critical sectors that will help in reversing some negative economic indices and trends, whilst positively impacting the lives of its citizens.
In a joint statement with Afreximbank, NNPCL’S Group CEO, Mele Kyari commended the bank’s 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 itsinterest in funding viable and strategic projects is a clear indication of investors’ confidence in NNPCL and Nigeria’s growth aspirations.” 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.
Commenting on the disbursement, Prof. Benedict Oramah, President & Chairman of the Board of Directors, Afreximbank, said: “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.”
