Would you like to receive notifications on latest updates of the following headlines?

Afreximbank Facilitates $3.3 Billion Crude Oil Prepayment Facility

POSTED ON January 14, 2024 •   Business      BY Oluwakemi Ademuyiwa

The African Export-Import Bank (Afreximbank) has successfully orchestrated a syndicated crude oil prepayment facility totaling US$3.3 billion, sponsored by the Nigerian National Petroleum Company Limited (NNPCL). An initial disbursement of US$2.25 million has already been made, with an additional tranche of US$1.05 million expected to follow.

United Bank for Africa Plc (UBA) played a pivotal role as the Local Arranger and Onshore Account Bank for this landmark transaction. The initiative is poised to alleviate foreign exchange illiquidity and bring stability to the Nigerian currency market, marking a significant stride in unlocking Nigeria's economic potential.

This colossal financing stands as Nigeria's largest crude oil prepayment facility and ranks among the most substantial syndicated loans raised in Africa in 2023. The 5-year facility carries a margin of 6.0% per annum above the 3-month secured overnight financing rate (SOFR). Notably, the transaction structure incorporates an embedded price balance mechanism, releasing 90% of excess cash from committed barrel sales to the borrower after debt service, while the remaining 10% pre-pays the facility, effectively shortening its final maturity.

The initial participating lenders include Afreximbank, Gunvor International BV—a Geneva-based multinational energy and commodities trading company, and Sahara Energy Resources Limited—an African-owned international energy and infrastructure conglomerate.

Afreximbank, leveraging its extensive experience in structuring complex oil & gas financing facilities across Africa, served as the Sole Mandated Lead Arranger, Technical and Modelling Bank, Bookrunner, Facility Agent, Offshore Account Bank, Intercreditor Agent, and Collateral Agent. Despite a challenging market environment, the bank successfully closed the facility.

Prof. Benedict Oramah, President and Chairman of the Board of Directors at Afreximbank, emphasized the bank's commitment to supporting African economies, stating, "This facility further demonstrates the Bank’s commitment to supporting African economies when such assistance is most needed."

NNPCL Group Chief Executive Officer, Mr. Mele Kolo Kyari, highlighted the strategic use of the facility's proceeds to enhance macro-economic stability, while Oliver Alawuba, Group Managing Director/CEO of UBA, expressed the bank's delight in participating, affirming UBA's commitment to providing crucial interventions for economic challenges in Nigeria and across Africa.

READ ALSO
South Africa Surpasses Nigeria in Fuel Imports Amid Dangote Refinery Operations
BY Abiodun Saheed Omodara May 29, 2025 0

Nigeria has lost its long-standing title as Africa’s largest importer of refined petroleum pro...

READ ALSO
Economists Warn of Debt Sustainability Risks as Nigeria Eyes $24.14 Billion in Foreign Loans
BY Abiodun Saheed Omodara May 28, 2025 0

Nigeria's public debt is poised for another substantial increase as President Bola Tinubu has sought...

READ ALSO
Nigeria's Solid Minerals Sector Attracts Over $800 Million in Investments Amid Policy Shift
BY Abiodun Saheed Omodara May 25, 2025 0

The Minister of Solid Minerals Development,Dr Dele Alake announced that Nigeria attracted over $800...

READ ALSO
SNEPCo Urges Indigenous Firms to Enhance Skills for Future Opportunities
BY Abiodun Saheed Omodara May 23, 2025 0

The Shell Nigeria Exploration and Production Company Limited (SNEPCo) has urged Nigerian firms to st...

READ ALSO
JUST IN: Dangote refinery slashes petrol prices by N15 nationwide
BY Abiodun Saheed Omodara May 22, 2025 0

LAGOS, Nigeria — The Dangote Petroleum Refinery recently announced a reduction in the pump pri...

READ ALSO
Sanwo-Olu Advocates for Innovation, Accountability in Economic Policies
BY Abiodun Saheed Omodara May 22, 2025 0

LAGOS, Nigeria - Lagos State Governor Babajide Sanwo-Olu has stated that Nigeria must hasten its pro...

READ ALSO
CBN's Rigid Monetary Policies Threaten Nigeria's Industrialization Efforts
BY Abiodun Saheed Omodara May 22, 2025 0

With the Central Bank of Nigeria (CBN) keeping the benchmark interest rate at 27.5 percent, local ma...

READ ALSO
FG to Auction 753 Housing Units Recovered from Ex-CBN Governor Emefiele
BY Abiodun Saheed Omodara May 20, 2025 0

ABUJA, Nigeria - The Federal Government has declared its intention to sell 753 housing units that we...

OUR CHANNELS:

Enugu Proposes Bill to Curb Criminal Activities Linked to Traditional Practitioners
BY Abiodun Saheed Omodara June 6, 2025 0

ENUGU, Nigeria - Enugu State Governor Peter Mbah has proposed an Executive Bill to the Enugu State H...


Bill Gates Advocates for Improved Health Care in Nigeria Amid Budget Constraints
BY Abiodun Saheed Omodara June 6, 2025 0

US billionaire Bill Gates, who chairs the Gates Foundation, expressed that Nigeria’s health bu...


Controller General Issues Urgent Security Directive for Correctional Facilities
BY Abiodun Saheed Omodara June 6, 2025 0

The Controller General of Corrections, Sylvester Nwakuche, has issued a strict order to all Zonal Co...


NEMA Mobilizes Teams to 15 States Amid Flood Warnings
BY Abiodun Saheed Omodara June 5, 2025 0

The National Emergency Management Agency (NEMA) has sent officials to 15 high-risk states to educate...


Edo Faces Diphtheria Outbreak, Two Confirmed Deaths
BY Abiodun Saheed Omodara June 5, 2025 0

EDO, Nigeria (NAN) - A diphtheria outbreak has been confirmed in Edo State, resulting in two deaths....


Tinubu Honors Bill Gates with National Award for Global Philanthropy
BY Abiodun Saheed Omodara June 5, 2025 0

LAGOS, Nigeria - President Bola Tinubu commended Bill Gates, the co-founder of Microsoft and chairma...


Bahrain, Colombia, DRC, Latvia, and Liberia Join UN Security Council for 2026-2027 Term
BY Abiodun Saheed Omodara June 5, 2025 0

The UN General Assembly on Tuesday elected five new non-permanent members to the UN Security Council...


Tinubu Orders Urgent Repairs on Flood-Damaged Bridge in Mokwa
BY Abiodun Saheed Omodara June 5, 2025 0

NIGER, Nigeria (NAN)- President Bola Tinubu has instructed the Federal Ministry of Works to repair t...


Nigeria Needs ₦2.2 Trillion to Eliminate Cervical Cancer by 2030, Says Task Force Chair
BY Abiodun Saheed Omodara June 5, 2025 0

ABUJA, Nigeria — Nigeria will need ₦2.2 trillion to roll out comprehensive cervical cancer ini...


EFCC Charges Two Men for Posing as Fake Sureties in Illegal Mining Case
BY Abiodun Saheed Omodara June 4, 2025 0

The Economic and Financial Crimes Commission (EFCC) has charged two individuals, Shehu Abdu and Isah...


More Articles

Load more...

Menu