Afreximbank and Heirs Energies sign a $750 million financing agreement to boost Nigeria's gas and oil output

The African Export-Import Bank and Heirs Energies Ltd signed a $750 million financing agreement on Monday to fund the 'field development program' in Nigeria and strengthen the capital structure of the energy firm.

Afreximbank arranged a dual-tranche senior secured, reserve-based loan facility that will support Heirs Energies in its growth strategy, as it seeks to increase oil and gas production. Afreximbank was the lead arranger for this deal, as well as facility agent and security agent.

At the signing ceremony in Abuja, Afreximbank president?George Elombi said: "This partnership is testament to Afreximbank’s commitment to value-creation?and empowerment of African entrepreneurs." He said that Afreximbank planned to invest significant capital in the African Energy Bank.

Heirs Energies chairman Tony Elumelu stated that the transaction highlighted the role of African capital in funding the future of the continent. He said that the transaction reflected Heirs Energies' successful journey from turnaround to growth.

The deal?builds upon a 2021 deal in which Heirs Energies (then Heirs Oil & Gas)?acquired a 45% share in?OML 17, backed by Afreximbank, and other lenders. Since then, the company has increased its crude production to 50,000 barrels a day and is now supplying gas to Nigeria's electricity sector. (Written by Chijioke Ahuocha. Mark Potter edited the text.

(source: Reuters)