Oando Announces Participation in $3.3 Billion Facility

Oando Trading, a subsidiary of Oando Plc, a major integrated energy solutions provider led by Nigerian oil magnate Wale Tinubu, has reported a successful $550 million contribution to the recent closing of a $925 million financing arrangement for Project Gazelle. Oando has successfully resumed trading on the Johannesburg Stock Exchange (JSE) following a temporary suspension due to financial reporting delays.

The Nigerian National Petroleum Company Limited (NNPC Limited) is the sponsor of Project Gazelle, a $3.3 billion structured crude oil-backed forward-sale financing arrangement supervised by the African Export-Import Bank. It is Nigeria’s largest syndicated loan on the international market, and one of Africa’s largest in recent years.

The facility, which was sealed on May 17, 2024, demonstrates Oando’s strong capabilities and collaboration with Afreximbank, according to a recent Johannesburg stock exchange report. Oando donated $550 million to the $925 million funding, while other businesses provided the remaining $375 million.

Oando was a key player in Project Gazelle, Africa’s most recent syndicated debt transaction, contributing $550 million to the $925 million tranche organized by Afreximbank. This decision highlighted Oando’s financial strength and significance as a key driver of Nigeria’s economic progress. Oando intends to harness the country’s oil resources to create immediate funds as well as long-term revenue streams by raising significant capital for this large-scale project.

Wale Tinubu, Group CEO of Oando Plc, announced the successful completion of the landmark facility, which represents a big win for both the firm and Nigeria. “The transaction further reinforces Oando’s ability to create value and our status as the indigenous partner of choice in Nigeria,” Tinubu stated.

Tinubu stressed Project Gazelle’s broader ramifications, adding that the facility will help the Federal Government achieve its goals of improving the country’s socioeconomic indices.

Wale Tinubu has evolved Oando into an international energy company with activities in the upstream, middle, and downstream sectors. Tinubu wields considerable power in Nigeria’s oil sector thanks to his 66.67 percent share in Oando, which he owns jointly with Omamofe Boyo through Ocean and Oil Development Partners (OODP).

The company’s earnings increased to N74.7 billion ($51 million) in 2023, with an average production of 20,837 barrels per day. Revenue surged 71% year on year to N3.4 trillion ($2.3 billion), boosted by increasing trading activity and a favorable exchange rate environment.

Oando’s participation in Project Gazelle is a great development for the company. With improved investor confidence and a concentration on its core upstream business, Oando appears to be in a strong position to navigate the competitive energy landscape and deliver value to stakeholders.

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