Oando Secures $375 Million Injection from Afreximbank, Mercuria, Eyes 100,000 Barrels Per Day
In a major boost to Nigeria’s oil and gas sector, Oando Plc, one of the country’s leading energy companies, has secured a $375 million financing facility from the African Export-Import Bank (Afreximbank) and Mercuria Energy Trading SA, a Swiss-based energy trading company.
The financing facility, which is one of the largest in Nigeria’s oil and gas sector in recent years, is expected to provide a significant injection of capital into Oando’s operations, enabling the company to expand its production capacity and increase its market share.
According to a statement released by Oando, the $375 million facility is a five-year revolving crude prepayment facility, which will be used to refinance the company’s existing debt and provide additional funding for its operations. The facility is structured as a $250 million term loan and a $125 million revolving credit facility.
Oando’s Group Chief Executive, Wale Tinubu, expressed delight at the successful closure of the financing facility, saying that it is a testament to the company’s strong reputation and financial discipline.
“We are pleased to have secured this significant financing facility from Afreximbank and Mercuria, two of the most respected institutions in the global energy industry.
“This financing will enable us to refinance our existing debt, increase our production capacity, and expand our market share. We are confident that this facility will play a critical role in driving our growth strategy and creating value for our shareholders,” Tinubu said.
The financing facility is expected to have a significant impact on Oando’s operations, enabling the company to increase its production capacity to 100,000 barrels per day (bpd) from its current level of around 50,000 bpd.
The company plans to achieve this increase through a combination of organic growth and strategic acquisitions.
Afreximbank’s President, Benedict Oramah, said that the bank is pleased to support Oando’s growth plans, noting that the company is a key player in Nigeria’s oil and gas sector.
“Afreximbank is committed to supporting the growth and development of African businesses, and Oando is a prime example of a company that has the potential to drive economic growth and create jobs in Nigeria.
“We are pleased to provide this financing facility to Oando, and we are confident that it will enable the company to achieve its growth objectives,” Oramah said.
Mercuria’s CEO, Marco Dunand, also expressed his company’s commitment to supporting Oando’s growth plans, saying that the company is a strategic partner in the global energy industry.
“Mercuria is pleased to partner with Oando to provide this financing facility, which will enable the company to expand its operations and increase its market share.
“We believe that Oando has a strong management team and a solid business strategy, and we are confident that this facility will help the company to achieve its growth objectives,” Dunand said.
The $375 million financing facility is a significant boost to Nigeria’s oil and gas sector, which has been facing challenges in recent years due to low oil prices and declining production levels. The facility is expected to provide a much-needed injection of capital into the sector, enabling companies like Oando to expand their operations and increase their production capacity.
Oando’s success in securing the financing facility is also a testament to the company’s strong reputation and financial discipline, which have enabled it to attract investment from reputable institutions like Afreximbank and Mercuria.
As Oando looks to expand its operations and increase its production capacity, the company is well-positioned to play a key role in driving Nigeria’s economic growth and development. With its strong management team, solid business strategy, and significant financing facility, Oando is poised to achieve its growth objectives and create value for its shareholders.
