The African Export-Import Bank has completed the upsizing of its reserve-based lending facility to Oando Oil Limited to $375m.

In a statement on Tuesday, Afreximbank explained that Oando’s paydown of the original $525m facility, secured in 2019, to $100m in 2024, created the headroom for refinancing.

RBL facilities allow upstream oil and gas companies to borrow against their proven reserves. Loan amounts are based on the value of future production and revenue, with periodic reassessments.

The bank said the upsizing would support Oando’s plan to achieve daily production of 100,000 barrels of oil and 1.5 billion cubic feet of gas by 2029.

Haytham Elmaayergi, Executive Vice President, Global Trade Bank, Afreximbank, described the transaction as key to advancing local content in Africa’s oil and gas sector.

He said, “Afreximbank has been a long-time financial partner to Oando and continues to support its growth initiatives. We are also pleased to have Mercuria, one of the world’s largest independent energy and commodities groups, bring global expertise and financial strength to this deal.”

Wale Tinubu, Group CEO of Oando PLC, said, “The upsizing is a strategic milestone that reinforces our commitment to maximizing the value of our asset portfolio under the Oando-NEPL JV.

These reserves could generate over $11bn in net cash flows for Oando over their lifecycle.”

The transaction, led by Afreximbank and supported by Mercuria Asia Resources PTE Ltd, is expected to boost job creation, infrastructure development, and technology transfer.

All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express written permission from PUNCH.

Contact: [email protected]