Afreximbank has completed the expansion of its reserve-based lending facility for Oando Oil Limited.
This facility allows oil and gas companies to secure financing based on the value of their reserves.
In its announcement, Afreximbank said Oando had significantly reduced its previous debt, creating room for refinancing and strengthening its financial position.
The expanded facility, arranged by Afreximbank and supported by Mercuria Asia Resources, aligns with Oando’s capital strategy.
The funding is expected to help Oando progress toward its long-term oil and gas production goals.
Afreximbank said the transaction is part of a broader effort to increase Nigeria’s oil output, boost its global energy role, and stimulate local economic development through job creation, infrastructure growth, and innovation.
Wale Tinubu, Group CEO of Oando, described the expansion as a strategic step that supports the company’s commitment to unlocking value from its asset portfolio.
He emphasized that the joint venture holds significant reserves with strong revenue potential.
He also noted that the facility would enhance the company’s ability to efficiently extract and monetize these resources.
Tinubu expressed gratitude to Afreximbank and Mercuria, saying their support reflects confidence in Oando’s plans to increase production, optimize operations, and deliver long-term value.
Haytham Elmaayergi, EVP of Afreximbank’s Global Trade Bank, said the deal reinforces the bank’s commitment to strengthening local capacity in Africa’s energy industry.
He reaffirmed the bank’s long-standing support for Oando and praised Mercuria’s role in boosting the company’s ability to realize its growth strategy.
source: www.thecable.ng
African Energy Council