The African Export-Import Bank (Afreximbank) has 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, to the Federal Government.
According to a statement by the bank on Thursday, this new disbursement brings the total current funded facility size to $3.175 billion.
Arranged and coordinated by Afreximbank, the accordion arrangement involved raising a combined total of $925 million from a consortium of crude oil off-taker lenders, including the Oando Group and Sahara Energy Resource Limited, among others.
Afreximbank acted as the Mandated Lead Arranger, Technical and Modelling Bank, Bookrunner, Facility Agent, Offshore Account Bank, Intercreditor Agent, and Collateral Agent for the transaction. This facility is expected to further support Nigeria’s macroeconomic stability and long-term economic growth, while enhancing the country’s industrialization and trade development efforts.
This announcement follows the first tranche of the $3.3 billion facility. In December 2023, the project received funded commitments totaling $2.25 billion. The additional $925 million arrangement raises the total amount disbursed to $3.175 billion.
Commenting on the disbursement, President and Chairman of the Board of Directors of Afreximbank, Prof. Benedict Oramah 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.”
Prof. Oramah hailed the original facility as a ‘landmark’ achievement, noting it as the largest crude oil-backed facility in Nigeria and one of the largest syndicated debts raised in Africa. He added that the successful closure of the first accordion demonstrated a strong market appetite for well-structured commodities-backed instruments.
Mele Kyari, Group Chief Executive Officer of NNPC Limited, praised Afreximbank’s management and team for their investment philosophy and their active role in co-creating 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.” Said Mr. Kyari.
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.