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FG gets $925m oil-backed lifeline from Afreximbank

THE African Export-Import Bank (Afreximbank) has announced an additional disbursement of $925m under the syndicated $3.3bn crude oil-backed prepayment facility sponsored by the Nigerian National Petroleum Company (NNPC) Limited to the Federal Government.

The fund, Channels Television gathered, is for Project Gazelle.

A statement by the bank on Thursday said the development brings the total current funded facility size to $3.175bn.

Arranged and coordinated by Afreximbank, the accordion arrangement saw the raising of a combined total of $925m from a consortium of crude oil off-taker lenders, including the Oando Group and Sahara Energy Resource Limited.

Afreximbank said it acted as the Mandated Lead Arranger, Technical and Modelling Bank, Bookrunner, Facility Agent, Offshore Account Bank, Intercreditor Agent, and Collateral Agent for the transaction, 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 followed the first tranche of the $3.3bn facility.

In December 2023, the project received funded commitments totalling $2.25mn. The $925m arrangement raises the total amount disbursed to $3.175bn.

Commenting on the disbursement, the President and Chairman of the Board of Directors of Afreximbank 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.”

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