Standard Bank provides $250 million in financing for Nigerian energy company Aradel
Standard Bank in South Africa has closed a $250m strategic financing facility for Aradel Energy Ltd. The Nigerian oil company will use the money to finance its acquisition strategy.
Aradel Energy is one of Nigeria's biggest indigenous oil companies. It's a major shareholder in the consortium that will buy Shell's assets onshore in West Africa for $2.5 billion in 2024.
Standard Bank's facility will be used to fund Aradel Energy’s acquisition of an additional 40% equity stake by Petrolin Trading Ltd in ND Western Ltd. The companies announced this in a joint statement.
Aradel owns a stake of 41.67% in ND Western. It said that upon completion of the deal, its 'interest will increase to?81.67%.
The statement said that ND Western has a 45% participation in OML 34, an oil and gas asset, and a 50% interest in Renaissance Africa Energy Company Ltd., which runs the Renaissance Joint Venture, and controls?30% a major Nigerian portfolio of energy.
It said that as a result of this, Aradel Energy’s indirect equity interest in Renaissance will rise to 53.3% and strengthen its upstream position.
According to a statement, the financing facility will be used for refinancing current loans and supporting increased output from Aradel's existing assets.
Aradel Energy is a subsidiary wholly owned by Aradel Holdings Plc. It operates the Ogbele?and Omerelu marginal onshore fields, as well as OPL 227 shallow-water terrain.
Standard Bank was the global coordinator, bookrunner and led the structure, execution, and funding of this facility. (Written by Chijioke Ahuocha, edited by Joe Bavier).
(source: Reuters)
