African Export-Import Bank (Afreximbank) has successfully completed upsizing its reserve-based lending facility in favour of Oando Oil Limited to US$375 million.
The company’s pay down of the original $525-million facility, secured in 2019, to $100 million in 2024, created significant headroom for refinancing and enhancing Oando’s financial flexibility.
The upsizing, led by Afreximbank, with support from Mercuria Asia Resources PTE Limited (Mercuria), which marks a key milestone in Oando’s strategic capital management, will support Oando’s ambition to achieve production of 100,000 barrels of oil per day and 1.5 billion cubic feet of gas per day by the end of 2029, effectively boosting Nigeria’s oil output and reinforcing the country’s position in the global energy market.
The deal is poised to generate ripple effects across the local economy by stimulating job creation, improving infrastructure, and fostering technological innovation in the oil and gas sector.
Group Chief Executive, Oando PLC, and Executive Chairman, Oando Energy Resources, Wale Tinubu, said:
“We are pleased to have completed the upsizing of our RBL facility, a strategic milestone that reinforces our commitment as operator of the Oando-NEPL JV to maximising the value of our expanded asset portfolio.
“Our Joint Venture holds extensive reserves with the potential to generate over $11 billion in net cash flows to Oando over the assets’ life. This working capital facility is a critical enabler towards efficiently extracting and monetising these resources.
“We appreciate the continued partnership of Afreximbank and Mercuria, whose unwavering support underscores their alignment with our long-term focus on maximising production, optimising asset performance, and delivering sustainable value to all stakeholders.”
Executive Vice President, Global Trade Bank, Afreximbank, Haytham Elmaayergi, described the transaction as a critical step in advancing Afreximbank’s strategy for promoting local content in Africa’s oil and gas sector.
