Nigerian energy company Oando Plc has inked an $800 million deal with the African Export and Import Bank (Afreximbank) at the Intra-African Trade Fair in Cairo, Egypt. The deal, announced on Twitter by IATF, is a syndicated dual facility comprising a $500 million Senior Secured Reserve Based Lending facility and a $300 million Receivables Backed Term Loan facility.
The financial package is intended to facilitate a strategic acquisition of a 20% participating interest in the Nigerian Agip Oil Company Limited, covering Oil Mining Leases 60, 61, 62, and 63, as well as the entire issued share capital of NAOC, acquired from Eni S.A.
Afreximbank emphasized its commitment to supporting indigenous African institutions, stating that the financing is aimed at empowering local companies and transferring capacity from foreign institutions to African hands. This acquisition is expected to significantly enhance Oando’s production capacity in the oil industry.
Oando Plc had previously announced an agreement with Italian firm Eni for the acquisition of 100% of the shares of its oil and gas unit, Nigerian Agip Oil Company Limited. With this transaction, Oando increases its participating interests in key assets, reinforcing its position in the oil and gas sector.
The deal between Oando Plc and Afreximbank is one of several financing agreements signed at the Intra-African Trade Fair, showcasing Afreximbank’s commitment to facilitating Africa’s growth ambitions across various sectors.