Oando Plc Signs Contract Worth $800 million With Afreximbank in Cairo, Egypt

Oando Plc recently signed a deal worth $800 million in partnership with the African Export and Import Bank (Afreximbank) at the ongoing Intra-African Trade Fair that took place in Cairo, Egypt.

In a tweet on its X handle on Wednesday, IATF said that the deal was for a syndicated dual facility.

A tweet on X, formerly Twitter shows that the IATF said that the contract was for a syndicated dual facility.

It reads,

• Afreximbank has signed a US$800M Syndicated Dual Facility deal with Oando! This strengthens Afreximbank’s commitment to empower African institutions and enhance local capacity. 

• A game-changer for Oando, propelling them to new heights in the oil industry!

The IATF also disclosed more information about the deal as it revealed that a part of the fund comprised a $500 million Senior Secured Reserve Based Lending facility and also a $300 million Receivables Backed Term Loan facility.

The PUNCH reports that the goal is to fuel a strategic acquisition of a 20% participating interest in the Nigerian Agip Oil Company Limited which includes Oil Mining Leases 60, 61, 62, and 63, as well as the entire issued share capital of NAOC, acquired from Eni S.A.

Afreximbank said that the move aligns with its unwavering commitment to supporting indigenous African institutions.

Afreximbank disclosed,

• The facility underscores our dedication to financing transactions that not only boost Africa’s trade but also empower local companies by transferring capacity from foreign institutions to African hands.

• This acquisition is a pivotal moment for Oando, propelling it to new heights in the oil industry by significantly enhancing its production capacity. Beyond that, this financing is a shining example of Afreximbank’s prowess in mobilizing capital for robust transactions within its member nations. 

Back Story: In September 2023, Oando Plc said it had reached an agreement with Italian company Eni over the acquisition of 100% of the shares of its oil and gas unit, Nigerian Agip Oil Company Limited.

With the transaction, Oando increased its current participating interests in OMLs 60, 61, 62, and 63 from 20% to 40%.

Other Reports: The firm ownership stake in all NEPL/NAOC/OOL Joint Venture assets and infrastructure include 40 newly discovered oil and gas fields of which 24 are actively producing presently and leads, twelve production stations, approximately 1,490 km of pipelines, three gas processing plants, the Brass River Oil Terminal, the Kwale-Okpai phases 1 & 2 power plants (with a total nameplate capacity of 960MW), and associated infrastructure, has also increased.

Since the IATF started holding in Cairo, Egypt, Afreximbank has signed over 10 financing contracts with different countries across vast sectors to boost Africa’s growth.