• Hausa Edition
  • Podcast
  • Conferences
  • LeVogue Magazine
  • Business News
  • Print Advert Rates
  • Online Advert Rates
  • Contact Us
Sunday, July 27, 2025
Leadership Newspapers
Read in Hausa
  • Home
  • News
  • Politics
  • Business
  • Sport
  • Health
  • Entertainment
  • Opinion
    • Editorial
  • Columns
  • Football
  • Others
    • LeVogue Magazine
    • Conferences
    • National Economy
  • Contact Us
No Result
View All Result
  • Home
  • News
  • Politics
  • Business
  • Sport
  • Health
  • Entertainment
  • Opinion
    • Editorial
  • Columns
  • Football
  • Others
    • LeVogue Magazine
    • Conferences
    • National Economy
  • Contact Us
No Result
View All Result
Leadership Newspapers
No Result
View All Result

Afreximbank, UBA Disburses 1st Tranche $3.3bn NNPC Loan

by Bukola Aro-Lambo
2 years ago
in Business
Afreximbank
Share on WhatsAppShare on FacebookShare on XTelegram

African Export-Import Bank (Afreximbank) has announced the successful disbursement of the initial tranche of the syndicated $3.3 billion crude oil prepayment loan to the Nigerian National Petroleum Company Limited (NNPC).

Advertisement

The bank said the initial disbursement was about  $2.25 billion, the second and final tranche of $1.05 billion expected to be disbursed later.

The bank described the facility as a “landmark financing and Nigeria’s largest crude oil prepayment facility as well as one of the largest syndicated loans raised in Africa in 2023.

“Investors were keen to consider ticket sizes of $250 million and $500 million amidst current headwinds and year-end pressures in the loan markets,” the bank said on Saturday.

The terms for the 5-year facility, which have attracted critical reviews in Nigeria in recent times because of impact on the country’s rising debt profile, carries a margin of 6.0 per cent per annum above the 3-month secured overnight financing rate (SOFR).

RELATED

Shettima To Represent Nigeria At 2nd UN Food Systems Summit In Addis Ababa

Shettima To Represent Nigeria At 2nd UN Food Systems Summit In Addis Ababa

6 hours ago
ASIS 4.0: Stakeholders Pledge Collaboration To Unlock Africa’s Potential

ASIS 4.0: Stakeholders Pledge Collaboration To Unlock Africa’s Potential

11 hours ago

Also, the transaction structure has an embedded price balance mechanism where 90 per cent of all excess cash from the sale of the committed barrels of the crude oil (after debt service) would be released, while the balance of 10 per cent would be used to prepay the facility.

The Bank clarified that this arrangement would effectively shorten the final maturity of the loan and free cash flow from future pledged crude oil cargoes for use by Nigeria.

The initial participating lenders included Afreximbank, Africa’s multilateral trade finance institution; Gunvor International BV, a Geneva-based multinational energy and commodities trading company, and Sahara Energy Resources Limited, an African-owned, leading international energy and infrastructure conglomerate.

Afreximbank said its extensive structuring and technical experience in arranging similar complex oil & gas financing facilities in Angola, Republic of Congo, South Sudan, Chad Egypt, Cote d’Ivoire and Ghana played a huge role in sealing the deal, despite a very challenging period in the global l financial market.

Afreximbank acted as Sole Mandated Lead Arranger, Technical and Modelling Bank, Bookrunner, Facility Agent, Offshore Account Bank, Intercreditor Agent and Collateral Agent, while United Bank for Africa Plc (UBA) acted as the Local  and Onshore Account Bank for the transaction.

While applauding the successful financial closure of the transaction, amid criticisms by concerned Nigerians, Afreximbank) President and Chairman of the Board of Directors, Benedict Oramah, explained that “this facility further demonstrates the Bank’s commitment to supporting African economies when such assistance is most needed.

“Afreximbank stands by its member countries in good and in difficult times. The disbursement of the initial $2.25 billion under the facility will support Nigeria’s long-term economic stability, ease access to import financing for raw materials and essential goods, support Industrialisation and trade development efforts.   We are pleased that despite the typical year-end encumbrances, our partners and investors  rallied and raised the funds required in record time. We thank them for their support,” Oramah said.

The NNPC group chief executive officer, Mele Kyari, said “the proceeds of the facility have been made available to the Federal Republic of Nigeria as one of several efforts towards improving macro-economic stability. The participation of global, international and regional syndication firms is a further testament to the lending market’s appetite for financing sponsored by NNPC and signifies solid market confidence in Nigeria.”

The group managing director/CEO, United Bank for Africa (UBA), Oliver Alawuba said that “UBA is delighted to participate in this transaction which accentuates its commitment to providing necessary interventions and solutions towards addressing economic issues in Nigeria”.

 


We’ve got the edge. Get real-time reports, breaking scoops, and exclusive angles delivered straight to your phone. Don’t settle for stale news. Join LEADERSHIP NEWS on WhatsApp for 24/7 updates →

Join Our WhatsApp Channel




Tags: Afreximbank
SendShareTweetShare
Previous Post

Nutrition: Essential Nutrients For Pregnant Women

Next Post

Dare Gives Back to Society Through Journalism, As Gov. Makinde Commissions Omoluabi 87.7 FM Radio Station

Bukola Aro-Lambo

Bukola Aro-Lambo

You May Like

Shettima To Represent Nigeria At 2nd UN Food Systems Summit In Addis Ababa
Business

Shettima To Represent Nigeria At 2nd UN Food Systems Summit In Addis Ababa

2025/07/27
ASIS 4.0: Stakeholders Pledge Collaboration To Unlock Africa’s Potential
Business

ASIS 4.0: Stakeholders Pledge Collaboration To Unlock Africa’s Potential

2025/07/27
Caverton Champions Sustainable Marine Mobility With Award-winning Research
Business

Caverton Champions Sustainable Marine Mobility With Award-winning Research

2025/07/27
CORBON Inducts 420 Registered Builders, Announces Competition
Business

CORBON To Register, Train Additional Cadres Of Building Artisans

2025/07/27
Nigerians In Diaspora Invest $90bn In Economy – Commission
Business

FirstBank, NiDCOM’s New Platform Targets Safer Homeownership For Nigerians Overseas

2025/07/27
Nigeria Targets 2.7m MT Cereal Production Growth By By 2034
Agriculture

Nigeria Targets 2.7m MT Cereal Production Growth By By 2034

2025/07/27
Leadership Conference advertisement

LATEST

Residents Jubilate Over Killing Of 3 Notorious Bandits In Sokoto

WAFCON: ‘You’ve Made Us Proud’, Jonathan Celebrates Super Falcons

Gov Sani Donates Vehicles To Federal Varsity Kachia

Falcons’ Victory: Nigeria Coming Back On Global Stage, Says Olawepo-Hashim

Court Remands TikToker, 1 Other Over Alleged Libel Against Late Mohbad’s Wife

JUST-IN: Gunmen Abduct 6 Law School Students In Benue

Bandits Kill 38 Kidnap Victims In Zamfara

‘Naija No Dey Carry Last’, Ex-VP Osinbajo Hails Super Falcons

Police Kill 3 Suspected Bandits, Recover 10 AK-47 Rifles

Bauchi Gov Warns Against Illegal Conversion Of Grazing Land To Farmlands

© 2025 Leadership Media Group - All Rights Reserved.

No Result
View All Result
  • Home
  • News
  • Politics
  • Business
  • Sport
  • Health
  • Entertainment
  • Opinion
    • Editorial
  • Columns
  • Football
  • Others
    • LeVogue Magazine
    • Conferences
    • National Economy
  • Contact Us

© 2025 Leadership Media Group - All Rights Reserved.