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.
In a statement released on Thursday, Afreximbank revealed that this latest disbursement brings the total funded facility size to $3.175 billion. The facility was arranged and coordinated by Afreximbank, which managed to raise the $925 million from a consortium of crude oil off-taker lenders, including prominent entities such as the Oando Group and Sahara Energy Resource Limited.
Afreximbank played multiple roles in the transaction, serving as the Mandated Lead Arranger, Technical and Modelling Bank, Bookrunner, Facility Agent, Offshore Account Bank, Intercreditor Agent, and Collateral Agent.
The bank highlighted that this facility aims to bolster Nigeria’s macroeconomic stability and promote long-term economic growth, alongside 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 secured funded commitments totaling $2.25 billion. The additional $925 million now raises the total disbursed amount to $3.175 billion.
Commenting on the disbursement, President and Chairman of the Board of Directors of Afreximbank, Benedict Oramah, 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.”
READ ALSO: NNPCL Anticipates Kaduna Refinery Reaching 60% Production Capacity by December
Oramah also described the original facility as ‘a landmark,’ noting that it is the largest crude oil-backed facility in Nigeria and one of the largest syndicated debts raised in Africa.
He highlighted that the successful closure of the first accordion underscores a strong market appetite for well-structured commodities-backed instruments.
NNPC Limited’s Group Chief Executive Officer, Mele Kyari, commended Afreximbank’s management and team for their investment philosophy and active interest in co-creating prosperity.
He stated: “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.”
Kyari further assured Afreximbank and the investment community of NNPCL’s commitment to continue growing the nation’s hydrocarbon resources and strengthening partnerships across the oil and gas value chain, both locally and globally.
