Afreximbank Disburses Additional US$925 Million in Crude Oil-Backed Facility

Mele Kyari, Group CEO of NNPC Limited, praised Afreximbank's management and team for their investment philosophy and active interest in co-creating prosperity.

The African Export-Import Bank (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.

Arranged and coordinated by Afreximbank, this accordion arrangement raised a combined total of US$925 million from a consortium of crude oil off-taker lenders, including but not limited to the Oando Group and Sahara Energy Resource Limited. Afreximbank acted as Mandated Lead Arranger, Technical and Modelling Bank, Bookrunner, Facility Agent, Offshore Account Bank, Intercreditor Agent, and Collateral Agent for the transaction. This funding is expected to provide significant support for Nigeria's macroeconomic stability and long-term economic growth while enhancing the country's industrialisation and trade development efforts.

Commenting on the disbursement, Prof. Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank, stated: "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 highlighted the original facility as a landmark achievement, noting that it is 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 tranche demonstrated strong market appetite for well-structured commodities-backed instruments.

Mele Kyari, Group CEO of NNPC Limited, praised Afreximbank's management and team for their investment philosophy and active interest 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 the investing community of NNPCL's commitment to continue growing the nation's hydrocarbon resources and strengthening partnerships across the oil and gas value chain locally and globally.

This latest disbursement follows the success of the first accordion tranche of the US$3.3 billion facility. In December 2023, the project received funded commitments totaling US$2.25 billion. The US$925 million accordion arrangement raises the total amount disbursed to US$3.175 billion.

The facility's completion is a critical step in supporting Nigeria's economic development goals, particularly in enhancing its trade capacity and industrial growth. By leveraging the country's rich hydrocarbon resources, the funding aims to foster sustainable economic development and strengthen Nigeria's position in the global energy market.