Oando PLC has announced its successful participation in the Project Gazelle financing.
Landmark Financing Deal
On May 17, 2024, Oando PLC closed its involvement in a $925 million accordion arrangement. This arrangement was coordinated by the African Export-Import Bank (Afreximbank). Oando Trading, a subsidiary of Oando PLC, contributed $550 million to the project. The remaining $375 million was raised by other parties.
Project Gazelle Overview
Project Gazelle is a $3.3 billion structured crude oil-backed forward-sale finance facility. This project is sponsored by the Nigerian National Petroleum Company Limited (NNPC Limited). The $3.3 billion financing is the largest syndicated loan ever raised by Nigeria. It is also one of the largest syndicated debts raised in Africa in recent years.
Wale Tinubu’s Statement
Wale Tinubu, Group Chief Executive of Oando PLC, commented on the deal. “The successful completion of this facility signifies another win for the company and the country,” he said. “The transaction further reinforces Oando’s ability to create value.”
Impact on Nigeria’s Economy
Project Gazelle aims to boost Nigeria’s socio-economic indices. The project supports the Federal Government’s efforts towards sustainable development. Tinubu emphasized Oando’s role as an indigenous partner of choice in Nigeria. “As a proudly indigenous company, our ambition is to support the sustainable development of the nation,” he added.
Afreximbank’s Role
Afreximbank served as the lead arranger for this financing. The bank continues to support African corporations, both public and private. This project increases confidence in the African market and continent.
Conclusion
The successful closure of the Project Gazelle financing marks a significant milestone. Oando PLC’s contribution of $550 million underscores its financial strength. This project is expected to have a positive impact on Nigeria’s economy. It also demonstrates Afreximbank’s commitment to supporting African growth.