Oando Plc Contributes $550m to NNPC’s $3.3bn Crude Oil-Backed Finance Facility
Oando Plc, a prominent indigenous oil company, has revealed its substantial contribution of $550 million to the $925 million recently disbursed to the Federal Government by the African Export-Import Bank. This is part of a broader $3.3 billion crude oil-backed finance facility orchestrated by the Nigerian National Petroleum Company Limited (NNPC).
In a corporate notice filed with the Nigerian Exchange Limited on Friday, Oando disclosed that the contribution was made through its subsidiary, Oando Trading. The $3.3 billion oil-for-cash loan, announced in August 2023, aims to support the naira and stabilise the foreign exchange market.
The statement, signed by Oando’s Chief Compliance Officer and Company Secretary, Ms. Ayotola Jagun, confirmed the company’s involvement in the $925 million accordion arranged and coordinated by the African Export-Import Bank for Project Gazelle. Oando’s contribution of $550 million was complemented by $375 million from other parties.
Group Chief Executive of Oando Plc, Wale Tinubu, remarked, “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.
“Against this backdrop, Project Gazelle will be instrumental in realising the Federal Government’s efforts to boost the country’s socioeconomic indices. Afreximbank, as the lead arranger, continues to support African corporations – public and private – growing confidence in the market and continent.”
The continental bank, which served as the Mandated Lead Arranger, Technical and Modelling Bank, Bookrunner, Facility Agent, Offshore Account Bank, Intercreditor Agent, and Collateral Agent for the transaction, stated that the funding is expected to provide further support for Nigeria’s macroeconomic stability and long-term economic growth while enhancing the country’s industrialisation and trade development efforts.
This announcement follows the successful first tranche of the $3.3 billion facility. In December 2023, the project received funded commitments totalling $2.25 billion. The $925 million accordion arrangement has now raised the total amount disbursed to $3.175 billion.
Commenting on the disbursement, Prof. Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank, stated, “The milestone achieved thus far on this facility demonstrates the bank’s capabilities in performing its role as a crucial development partner for Africa. It reaffirms our commitment to assisting our member states in their efforts to achieve economic growth and stability. This funding will greatly support the attainment of Nigeria’s short and long-term economic development priorities.”
