Lagos, 4th of August, 2020; The United Bank for Africa Plc (UBA), the
\nleading pan-African financial services group, has acted as the lead
\narranger of a consortium of Nigerian commercial and international banks
\nin a $1.5 Billion Pre-Export Finance Facility for the Nigerian National
\nPetroleum Corporation (NNPC) and its upstream subsidiary, the Nigerian
\nPetroleum Development Company (NPDC).<\/p>\n
UBA is providing $200 million (Naira equivalent) to support investment
\ngrowth and liquidity requirements.\u00a0 The facility will provide
\nmuch-needed capital for investment in NNPC’s production capacity, which
\nis of strategic importance to the Nigerian economy and the country’s
\nleading source of foreign exchange earnings.\u00a0 UBA’s position as Lead
\nArranger recognises the Group’s strength in structuring and deploying
\nfinancing to the oil and gas sector, and the depth and liquidity of the
\nGroup’s balance sheet.<\/p>\n
The $1.5 billion facility is structured in two tranches.\u00a0 The first
\ntranche of $1 billion, to be repaid over a period of five years, will be
\nprovided in dollars, with UBA acting as the Facility Agent Bank. The
\nsecond tranche of $500 million, will be provided in local currency, over
\nseven years, with UBA acting as Lead Bank, providing $200 million in
\nNaira equivalent.<\/p>\n
Both facilities will be repaid from an allocation of 30,000 barrels per
\nday of NPDC’s crude oil.\u00a0 UBA has a strong track record in the resources
\nsector across Africa, having facilitated oil prepayment deals with the
\nNNPC, including its 2013 $100 million participation in the PXF Funding
\nLimited transaction, and a further $60 million in the 2015 Phoenix
\nExport Funding Limited transaction.\u00a0 In Senegal, UBA was responsible for
\nthe EUR 240m revolving crude oil financing facility for the Soci\u00e9t\u00e9
\nAfricaine de Raffinage and in Congo Brazzaville co-funded the $250m
\ncrude oil prepayment facility for Orion Oil Limited.<\/p>\n
Other participants in the NNPC deal include Standard Chartered Bank,
\nAfrexim Bank, Union Bank, and two oil trading companies, Vitol and
\nMatrix.<\/p>\n
Speaking on this most recent support for Nigeria’s petroleum industry,
\nUBA Group Chairman, Tony O. Elumelu stated ‘This has been one of the
\nmost economically challenging years that Nigeria has witnessed.\u00a0 With
\nthe sharp drop in the price of oil and the ensuing hardship that
\nfollowed the onset of the Covid-19 pandemic, the private sector must
\ncome together and contribute meaningfully to the economy.\u00a0 This facility
\nis clear evidence of this \u2013 UBA is providing an investment that will
\nsignificantly improve Nigeria’s production capacity and in doing so also
\ndemonstrating the strength, depth, and sophistication of our commercial
\nbanking capability.\u00a0 I believe that together, working with governments,
\nwe can create more jobs and more wealth for people, not only in Nigeria
\nbut across Africa’.<\/p>\n
The United Bank for Africa is one of the largest employers in the
\nfinancial sector on the African continent, with over 20,000 employees
\nand serving over 20 million customers.\u00a0 UBA operates in 20 African
\ncountries and globally in the United Kingdom, the United States of
\nAmerica and France, providing retail, commercial and institutional
\nbanking services, leading financial inclusion and implementing cutting
\nedge technology.<\/p>\n","protected":false},"excerpt":{"rendered":"
Lagos, 4th of August, 2020; The United Bank for Africa Plc (UBA), the leading pan-African financial services group, has acted as the lead arranger of a consortium of Nigerian commercial…<\/p>\n","protected":false},"author":1,"featured_media":75198,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[17],"tags":[],"class_list":["post-75197","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-exclusive"],"yoast_head":"\n