- This announcement follows the success of the first accordion tranche of the $3.3bn facility. In December 2023, the project received funded commitments totaling $2.25m
On Thursday, the African Export-Import Bank announced an additional disbursement of $925 million under the $3.3 billion syndicated crude oil-backed prepayment facility sponsored by the Nigerian National Petroleum Company Limited.
This latest disbursement for Project Gazelle Funding Limited increases the total funded facility size to $3.175 billion.
Arranged and coordinated by Afreximbank, the accordion arrangement raised a combined total of $925 million from a consortium of crude oil off-taker lenders, including 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 which is expected to provide further support for Nigeria’s macroeconomic stability and long-term economic growth while enhancing the country’s industrialisation and trade development efforts,” the bank stated in a statement posted on its website on Thursday.
This announcement follows the success of the first accordion tranche of the $3.3bn facility. In December 2023, the project received funded commitments totaling $2.25m.
The $925m accordion arrangement raises the total amount disbursed to $3.175bn.
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.”
Oramah described the original facility as ‘a landmark’ for being the largest crude oil-backed facility in Nigeria and one of the largest syndicated debts raised in Africa.
He said the closure of the first accordion demonstrated the existence of positive market appetite for well structured commodities-backed instruments.
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