Heirs Energies Ltd has completed a 750 million dollar financing deal with the African Export-Import Bank, strengthening its funding base.
Tony Elumelu, chairman of Heirs Holdings, and George Elombi, president and board chairman of Afreximbank, signed the agreement in Abuja.
Rather than focusing only on efficiency, the deal is meant to support the company’s wider expansion plans in the energy sector.
Mr. Elumelu said the transaction shows how African capital can directly back African companies.
He praised Afreximbank for playing a strong role in helping local businesses grow, calling it one of the continent’s most influential financial institutions.
He also advised African business leaders to protect the trust of lenders that support their projects.
He said Afreximbank has developed the strength and confidence to finance African enterprises and added that businesses must deliver results when they receive such support.
According to him, strong performance encourages financial institutions to provide more funding, not just to one company but across the private sector.
Mr. Elombi said Afreximbank remains focused on helping African businesses expand.
He explained that the bank is developing a dedicated energy bank that will manage most of its energy-related investments.
He said the institution plans to commit significant funding to the initiative and build it with the same level of innovation that defines Afreximbank’s operations.
Samuel Nwanze, executive director and chief financial officer of Heirs Energy, said the 750 million dollar funding would help the company grow.
He explained that the company plans to expand through both internal development and asset acquisitions.
Mr. Nwanze said the financing would prepare Heirs Energy for its next stage of development.
He said the company believes its assets can increase crude oil production to about 100,000 barrels per day from the current level of roughly 55,000 barrels.
He added that the company aims to reach that production target within three years while also delivering about 250 million standard cubic feet of gas.
Mr. Nwanze said Heirs Holdings entered the oil and gas sector to support Nigeria’s energy needs.
He added that the company will continue to pursue asset acquisitions that align with this long-term objective.
source:www.premiumtimesng.com
African Energy Council