Afreximbank provides $650m funding for Oando’s acquisition of Nigerian Agip Oil Company

The African Export-Import Bank has said that it provided $650m funding for Oando’s acquisition of the 100 percent stake in the Nigerian Agip Oil Company Limited.

The Continental Bank disclosed this in a statement on Friday.

The bank noted that it successfully arranged a senior $500 million and a junior $150 million reserve-based lending facility for Oando Petroleum and Natural Gas Company Limited, which made the NAOC possible.

The facility was used to finance Oando’s acquisition of the 20 percent participating interest held by Nigerian Agip Oil Company Limited in the NEPL/NAOC/Oando Joint Venture in Nigeria.

Recall that Oando announced the completion of the acquisition on Thursday saying, “Today marks a historic milestone for Oando Plc as we proudly announce the completion of our agreement with Eni for the acquisition of 100 percent shares of Nigerian Agip Oil Company Limited”.

Commenting on the role of the bank in the deal, the Executive Vice President of Global Trade Bank, Afreximbank, Haytham Elmaayergi, said the facility marked a critical step in advancing the bank’s strategy for promoting local content in Africa’s oil and gas sector.

“By supporting the acquisition of key energy assets by an Indigenous company like Oando, the bank is fostering economic empowerment, enhancing regional trade, and contributing to the sustainable development of Africa’s natural resources,” he said.