LAGOS, Nigeria (VOICE OF NAIJA)- Oando Plc, an indigenous oil company has disclosed that it contributed $550 million to the $925 million provided to the Federal Government by the African Export-Import Bank.
This funding is part of a $3.3 billion crude oil-backed finance facility initiated by the Nigerian National Petroleum Company Limited.
In a corporate notice submitted to the Nigerian Exchange Limited on Friday, Oando Plc stated that the contribution was made through its subsidiary, Oando Trading.
The $3.3 billion oil-for-cash loan by the NNPC, intended to bolster the naira and stabilize the foreign exchange market, was initially announced in August 2023.
In a statement signed by Chief Compliance Officer and Company Secretary Ms. Ayotola Jagun, Oando revealed its participation in the $925 million financing, organized by the African Export-Import Bank under Project Gazelle.
The firm mentioned that, in addition to its $550 million contribution, the remaining $375 million was provided by other parties.
READ ALSO: Oando Earned N3.4trn In 2023 – Tinubu
Group Chief Executive, Oando Plc, Wale Tinubu, explained, “The successful completion of this facility signifies another win for the company and the country at large. The transaction further reinforces Oando’s ability to create value and the company’s status as the indigenous partner of choice in Nigeria. As a proudly indigenous company, our ambition has always been to use our platform to support the sustainable development of the nation.
“Against this backdrop, Project Gazelle will be instrumental in realizing the Federal Government’s efforts to boost the country’s socioeconomic indices. Afreximbank as lead arranger continues to support African corporations – public and private growing confidence in the market and continent.”
In a statement on Thursday, the continental bank which acted as the Mandated Lead Arranger, Technical and Modelling Bank, Bookrunner, Facility Agent, Offshore Account Bank, Intercreditor Agent and Collateral Agent for the transaction said it is expected to provide further support for Nigeria’s macroeconomic stability and long-term economic growth while enhancing the country’s industrialisation and trade development efforts.”
The announcement comes after the successful completion of the first tranche of the $3.3 billion facility. In December 2023, the project secured funded commitments amounting to $2.25 billion.
With the addition of the $925 million accordion arrangement, the total disbursed now stands at $3.175 billion.
Commenting on the disbursement, the President and Chairman of the Board of Directors of Afreximbank, Prof. Benedict Oramah, said, “The milestone achieved thus far on this facility demonstrates the bank’s capabilities in performing its role as a crucial development partner for Africa.
“It reaffirms our commitment to assisting our member states in their efforts to achieve economic growth and stability. This funding will greatly support the attainment of Nigeria’s short and long-term economic development priorities.”