11 Banks Provide N94.90bn 5-Year Medium Term Loan Facility For Oando

A consortium of 11 banks have agreed to jointly provide N94.90bn 5-year Medium Term Loan (MTL) facility in favour of Oando Plc. The banks are Access Bank Plc, Diamond Bank Plc, Ecobank Nigeria Limited, First City Monument Bank Plc, Fidelity Bank Plc, Keystone Bank Plc, Stanbic IBTC Bank Plc, Union Bank of Nigeria Plc. Zenith Bank Plc, FBN and United Bank for Africa (UBA) Plc may eventually join through an accordion

This facility is coming on the heels of the investment of the Helios/Vitol Group (HVI) into the downstream operations of Oando.

Oando Plc is an integrated oil and gas company headquartered in Nigeria and the largest integrated energy solutions provider in sub-Saharan Africa with primary and secondary listings on the Nigerian stock Exchange (NSE) and the Johannesburg Stock exchange (JSE) respectively.

At a signing ceremony which held in Lagos on Monday June 07, 2016, the banks confirmed that the MTL will bring an immediate cash flow injection of $195million and further repayment is expected to happen within 90 days from the proceeds of $130million from the sale of Oando Gas & Power. This sale is to allow Oando strictly focus on its downstream activities in light of the recent deregulation. The company also expects to raise an additional $800million to $1billion within the next 18 to 24 months as it deleverages on its Oando Energy Resources (OER).

Speaking on behalf of the participating banks, the GMD/CEO of Access Bank Plc, Herbert Wigwe said MTL facility would allow Oando to optimize its balance sheet towards greater efficiency.

“As we all know, Oando is the largest indigenous oil and gas player in the Sub Saharan Africa and this MTL facility would allow it to optimize its balance sheet towards greater efficiency and improve its working capital. This combined with the synergy of Investment by HVI into its downstream operations, will see Oando’s growth and development really take off”, Wigwe said.

The Group Chief Executive of Oando, Mr. Adewale Tinubu commended the banks for providing the facility to the company noting that it would have significant development impact on Oando’s group operations.

 

About Oando Plc

Oando PLC is an integrated oil and gas company headquartered in Nigeria. It is the largest integrated energy solutions provider in sub-Saharan Africa with primary and secondary listings on the Nigerian stock Exchange (NSE) and the Johannesburg Stock exchange (JSE) respectively and has one of its subsidiaries, Oando Energy Resources (“OER”) listed on the Toronto Stock exchange (TSX).

Oando’s businesses cut across the upstream, midstream and downstream sector of the Oil & Gas Industry and its activities involve exploration & production, energy services, gas & power, refining and trading of petroleum products both locally and internationally.

June 07, 2016.