Afreximbank finalizes US$925 million accordion disbursement for Project Gazelle Funding Limited

By Stermy 3 Min Read

The African Export-Import Bank (Afreximbank) has announced an additional disbursement of $925 million under the $3.3 billion crude oil-backed prepayment facility sponsored by the Nigerian National Petroleum Company (NNPC) Limited. This latest disbursement increases the total current funded facility size to $3.175 billion.

Arranged and coordinated by Afreximbank, the accordion arrangement successfully raised a combined total of $925 million from a consortium of crude oil off-taker lenders, including major players such as the Oando Group and Sahara Energy Resource Limited.

Afreximbank played multiple key roles in this transaction, including Mandated Lead Arranger, Technical and Modelling Bank, Bookrunner, Facility Agent, Offshore Account Bank, Intercreditor Agent, and Collateral Agent.

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This extensive involvement highlights the bank’s commitment to supporting Nigeria’s macroeconomic stability, long-term economic growth, industrialization, and trade development.

This announcement builds on the success of the first accordion tranche of the $3.3 billion facility. In December 2023, the project received funded commitments totaling $2.25 million. The new $925 million disbursement brings the total amount disbursed to $3.175 billion.

Prof. Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank, commented on the milestone, stating, “The progress achieved with this facility showcases Afreximbank’s role as a vital development partner for Africa. It underscores our dedication to supporting our member states in achieving economic growth and stability. This funding will significantly aid Nigeria in reaching its short and long-term economic development goals.”

Prof. Oramah also highlighted the original facility as a landmark achievement, noting it as the largest crude oil-backed facility in Nigeria and one of the biggest syndicated debts raised in Africa. He added that the closure of the first accordion tranche demonstrated a strong market appetite for well-structured commodities-backed instruments.

Mele Kyari, Group CEO of NNPC Limited, praised Afreximbank’s management and team for their investment philosophy and active interest in fostering prosperity. “The successful disbursement of the first accordion under Project Gazelle and Afreximbank’s willingness to fund viable and strategic projects reflect investors’ confidence in NNPC Limited and Nigeria’s growth ambitions,” said Mr. Kyari.

Mr. Kyari further assured Afreximbank and the investment community of NNPC Limited’s commitment to growing Nigeria’s hydrocarbon resources and strengthening partnerships across the oil and gas value chain, both locally and globally.

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By Stermy
Stermy is one Crazy fan of the word "Internet". Always online to stay informed and keep others updated. #townflex