Chappal Energies, through its subsidiary Chappal Investments Limited, has completed a $340m Senior Secured Reserve Based Lending facility and a $90m Junior Secured RBL facility.
The company, in a statement on Monday signed by its Chief of Corporate Services and Human Resources, Nonyelum Barrow, announced that “Chappal Energies, through its subsidiary Chappal Investments Limited, has successfully completed a $340m Senior Secured Reserve Based Lending facility provided by a syndicate of leading international and African financial institutions, alongside a $90m Junior Secured RBL facility supported by a major global commodities company. These transactions represent a significant milestone in the company’s financial and strategic growth,” the statement partly read.
The senior facility was provided by a syndicate of international and African financial institutions, while the junior facility was provided by a global commodities company.
The company said the transaction followed a technical, legal and commercial due diligence process and reflects lender confidence in its asset base, governance framework and operating model.
Proceeds from the facilities will be used primarily to refinance acquisition bridge financing related to the Equinor Nigeria transaction, as well as to support field development, production optimisation and other operational requirements across Chappal Energies’ asset portfolio.
Chappal Energies said the facilities establish a long-term financing structure aligned with its reserve base and cash flow profile.
The company said it remains focused on executing its strategy to become a pan-African energy company operating to international standards and continues to engage with regulators, partners and other stakeholders as it considers future acquisition opportunities.
The PUNCH reported that Chappal Energies has entered into a Sale and Purchase Agreement to acquire TotalEnergies Exploration and Production Nigeria Limited’s 10 per cent non-operated interest in its onshore and shallow water assets within the Shell Petroleum Development Company Joint Venture in the Niger Delta.
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