Oando contributes $550m to Afreximbank’s $3.3bn loan to NNPCL

Oando PLC, a Nigerian indigenous energy group, said it is a party to the successful closure of a $925 million loan arranged and coordinated by the African Export-Import Bank (Afreximbank) for Project Gazelle.

The arrangement saw a contribution of $550m by Oando Trading, a subsidiary of Oando PLC, and the balance of $375m was raised by other parties to get a total disbursement amount of $925m.

Project Gazelle is a $3.3bn structured crude oil-backed forward-sale finance facility sponsored by the Nigerian National Petroleum Company Limited (NNPCL).

The landmark $3.3bn Afreximbank-arranged financing is the largest syndicated loan ever raised by Nigeria in the international market and one of the largest syndicated debts raised in Africa in recent years.

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Speaking on Oando’s participation, Wale Tinubu, Group Chief Executive, Oando PLC, said, “The successful completion of this facility signifies another win for the company and the country at large.

“The transaction further reinforces Oando’s ability to create value and the company’s status as the indigenous partner of choice in Nigeria.

“As a proudly indigenous company, our ambition has always been to use our platform to support the sustainable development of the nation.”

In August, last year, the NNPCL said it had secured the crude oil repayment loan from the Cairo-based bank that would support the government’s reforms to stabilise the exchange rate market.