Afreximbank releases $925m syndicated credit facility to Nigeria
The African Export-Import Bank (Afreximbank), has released $925 million to Nigeria under a $3.3 billion syndicated credit facility sponsored by the Nigerian National Petroleum Company, Ltd. (NNPCL), bringing total disbursements to $3.175 billion.
“Arranged and coordinated by Afreximbank, the accordion arrangement saw the raising of a combined total of $925 million from a consortium of crude oil off-taker lenders including but not limited to the Oando Group and Sahara Energy Resource Limited”, the bank said in a statement.
This disbursement “is expected to provide further support for Nigeria’s macroeconomic stability and long-term economic growth while enhancing the country’s industrialization and trade development efforts”, said the statement on Afreximbank’s website.
According to NNPCL chief executive officer Mele Kyari commented, “The successful disbursement of the first accordion under project Gazelle and its interest in funding viable and strategic projects is a clear indication of investors’ confidence in NNPCL and Nigeria’s growth aspirations”.
The financing campaign, called Project Gazelle, is Nigeria’s biggest crude oil prepayment facility and one of the largest syndicated loans raised in Africa last year, according to Afreximbank.
Afreximbank earlier disbursed $2.25 billion under Project Gazelle.
“The disbursement of the initial US$ 2.25 billion under the facility will support Nigeria’s long-term economic stability, ease access to import financing for raw materials and essential goods, support Industrialization and trade development efforts”, Afreximbank president Benedict Oramah said in a statement January 12, 2024.
Last January the Central Bank of Nigeria, CBN, said it had paid $2 billion in foreign exchange liabilities across various sectors including petroleum, aviation and manufacturing.
