Oando Plc has announced conclusion of a N94.6 billion facility provided by ten leading financial institutions in Nigeria.
The institutions involved in the financing are; Access Bank Plc, Diamond Bank Plc, Ecobank Plc, First City Monument Plc, Fidelity Bank Plc, Keystone Bank Plc, Stanbic IBTC, United Bank for Africa , Union Bank of Nigeria Plc and Zenith Bank Plc.
The financing, coordinated by the mandated Lead Arranger, Access Bank Plc, is a 5-year Medium Term Note (MTN) at Nibor + 200 bps as a crucial part of our strategic restructuring plans.
Commenting on the transaction, Group Chief Executive, Oando Plc, Mr. Wale Tinubu, said, “In a bid to return to profitability in 2016, I am happy to announce the successful completion of restructuring our overall debt profile into a N94.6 billion Medium Term, 5-year consolidated facility, with a 3-year moratorium on principal.
He explained further: “This is the pivotal leg in our Group restructuring plan of Growth; via the upstream business, deleverage; via the disposal of $350 million in assets’ value in 2016 and our return to Profitability in 2016, driven by our dollar earning oil export and trading activities.
“The company now stands diversified with higher weighted dollar denominated earnings, an optimised and restructured balance sheet with lower cost of capital and longer tenors. With the upturn in the global oil prices to levels above $50 per barrel, we now look forward to the successes of 2016, having ridden out the storm.”
The transaction further signifies the solid commitment from Nigerian banking institutions to support sustained growth and development of the Nigerian oil and gas sector in these trying times.
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