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Ten Banks In Agreement To Help Oando With N94bn Credit Facility

images_oandoOando PLC has announced the agreement of a N94.6 Billion facility provided by ten leading financial institutions in Nigeria.

According to Wale Tinubu, Group Chief Executive, Oando PLC, the financing, coordinated by the mandated Lead Arranger, Access Bank Plc, is a 5-year Medium Term Note (MTN) at Nibor + 200 bps to assist the company meet its financial obligations in the low crude oil price environment.

“In a bid to return to profitability in 2016, I am happy to announce the successful completion of the restructuring our overall debt profile into a N94.6 Billion Medium Term, five-year consolidated facility, with a three-year moratorium on principal,” he said.

“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 & 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 global oil prices to levels above $50 per barrel, we now look forward to the successes of 2016, having ridden out the storm.”

The financing consortium includes, Access Bank, Diamond Bank, Ecobank, FCMB, Fidelity Bank, Stanbic IBTC Bank, UBA Bank, Union Bank and Zenith Bank.

The company has substantially reduced its debt profile in the last 24 months, and the new loan facility will enable key restructuring of its remaining debt as it has also pledged to continue to exercise strong financial discipline.

Story by David Oputah

Monday Ashibogwu

Monday Michaels Ashibogwu is Editor-In-Chief of QUICK NEWS AFRICA, one of Nigeria's leading online news service.

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