The African Export-Import Bank (Afreximbank) and the United Bank for Africa (UBA) have successfully disbursed $2.25 billion as part of the $3.3 billion oil-for-cash loan facility arranged by the Nigerian National Petroleum Company Limited (NNPCL). In a statement released over the weekend, UBA, acting as the Local Arranger and Onshore Account Bank for the transaction, confirmed the initial disbursement and announced that a second tranche of $1.05 billion is expected to follow.<\/p>\n
The five-year facility carries a margin of 6.0 per cent per annum above the three-month secured overnight financing rate. The unique transaction structure includes an embedded price balance mechanism. Under this mechanism, 90 per cent of all excess cash generated from the sale of the committed barrels (after debt service) will be released to the borrower. Meanwhile, the remaining 10 per cent will be allocated to repaying the facility, effectively shortening the final maturity and freeing up cash flow from future pledged cargoes for use by Nigeria.<\/p>\n
Professor Benedict Oramah, President and Chairman of the Board of Directors at Afreximbank, expressed satisfaction with the successful financial close, stating, \u201cThis facility further demonstrates the Bank\u2019s commitment to supporting African economies when such assistance is most needed.” Oramah highlighted that the disbursement will contribute to Nigeria\u2019s long-term economic stability, facilitate access to import financing for raw materials and essential goods, and support industrialization and trade development efforts.<\/p>\n
Mele Kolo Kyari, the NNPCL Group Chief Executive Officer, affirmed that the proceeds from the facility have been made available to the federal government, strategically contributing to improving macro-economic stability. Kyari acknowledged the participation of global, international, and regional syndication firms, seeing it as a testament to the lending market’s confidence in financing sponsored by NNPCL and demonstrating solid market confidence in Nigeria.<\/p>\n","protected":false},"excerpt":{"rendered":"
The African Export-Import Bank (Afreximbank) and the United Bank for Africa (UBA) have successfully disbursed $2.25 billion as part of the $3.3 billion oil-for-cash loan facility arranged by the Nigerian National Petroleum Company Limited (NNPCL). In a statement released over the weekend, UBA, acting as the Local Arranger and Onshore Account Bank for the transaction, […]<\/p>\n","protected":false},"author":14,"featured_media":14578,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[173],"tags":[],"class_list":["post-14573","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"aioseo_notices":[],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/posts\/14573","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/users\/14"}],"replies":[{"embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/comments?post=14573"}],"version-history":[{"count":3,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/posts\/14573\/revisions"}],"predecessor-version":[{"id":14615,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/posts\/14573\/revisions\/14615"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/media\/14578"}],"wp:attachment":[{"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/media?parent=14573"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/categories?post=14573"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/tags?post=14573"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}