Afreximbank Facilitates Historic $3.3 Billion Crude Oil Prepayment Facility for Nigeria

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Afreximbank, the Pan-African multilateral financial institution, has successfully orchestrated a groundbreaking syndicated $3.3 billion crude oil prepayment facility sponsored by the Nigerian National Petroleum Company Limited (NNPCL).

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This marks Nigeria’s largest-ever crude oil prepayment facility and one of Africa’s most substantial syndicated loans in recent years. The facility, supported by global, international, and regional syndication firms, reinforces market confidence in Nigeria.

The initial disbursement of $2.25 billion, with a second tranche of $1.05 billion expected, constitutes the largest syndicated loan raised by Nigeria in the international market. The five-year facility, featuring a margin of 6.0% per annum above the 3-month secured overnight financing rate (SOFR), aims to bolster Nigeria’s macroeconomic stability, fuel long-term economic growth, and facilitate access to raw materials and trade development.

Key participants in this landmark transaction include Afreximbank, Gunvor International BV, a Geneva-based multinational energy and commodities trading company, and Sahara Energy Resources Limited, a leading African-owned international energy and infrastructure conglomerate.

The deal’s success, despite market challenges, underscores Afreximbank’s expertise in structuring complex oil and gas financing facilities.

Prof. Benedict Oramah, President and Chairman of Afreximbank, emphasized the institution’s commitment to supporting African economies, stating, “The disbursement of the initial $2.25 billion under the facility will support Nigeria’s long-term economic stability, ease access to import financing for raw materials and essential goods, support industrialization, and trade development efforts.”

The participation of global, international, and regional syndication firms signifies solid market confidence in Nigeria, according to Mele Kolo Kyari, NNPCL Group Chief Executive Officer. The involvement of United Bank for Africa (UBA) further underscores its commitment to addressing economic challenges in Nigeria, as noted by Oliver Alawuba, Group Managing Director/CEO of UBA.

This transaction, completed amid year-end pressures, reflects a vote of confidence in Nigeria’s economic prospects and underscores the resilience of the country’s financial markets.

Gbenga Samson
Gbenga Samsonhttp://ThisDayLive.com
Samson Gbenga Salau [Editorial Board Adviser] Gbenga Samuel Salau is a professional journalist with over 17 years experience in journalism, he is a graduate of Communication and Language Arts, University of Ibadan. On completion of his youth service, he joined The Guardian as a freelance journalist and was later absorbed as a staff. While in the University, he was a campus journalist reporting for the Independence Hall and Faculty of Arts Press Clubs. As a campus journalist, he won the following awards; Independence Hall Press Best News writer; University of Ibadan Union of Campus Journalists’ Best News Reporter/Writer; First Runner-up, Reuben Abati Award for Investigative Journalism; Association of Faculty of Arts Students’ Press Best Reporter; University of Ibadan Union of Campus Journalists’ Best Political Writer; Winner, Reuben Abati Award for Investigative Journalism, and University of Ibadan Union of Campus Journalists’ Best Interviewer. He served the Association of Communication and Language Arts Students, as the Public Relation Officer, the same year he was appointed the News Editor of the Association of Faculty of Arts Students Press. The following session, he was made the General Editor, and a member of the 13-man University of Ibadan Students’ Union Transition Committee. As a reporter in The Guardian, in 2014, he won the Promasidor Quill Award Best Report on Nutrition and DAME Business Reporting category. In the 2015 edition of the Promasidor Quill Award, he won the best Report on Nutrition and Brand Advocate Categories, while in 2016, he won the NMMA Print Journalist of the Year, first runner-up Golden Pen Reporter of the Year and SERAs CSR Awards. Gbenga Salau loves traveling, reading, and listening to songs with good lyrics no matter the genre.

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