Ecobank Capital, the investment banking arm of Ecobank Group, the leading pan-African bank, announces that it has successfully raised, on behalf of Orion Oil Ltd ("Orion"), the sum of USD 500 million to be utilised for the prepayment of crude oil cargos to be supplied by Société Nationale des Pétroles du Congo (The National Oil Company of the Republic of Congo, "SNPC").The facility comprises a US dollar denominated USD 342 million tranche and a XAF denominated USD 158 million tranche. Ecobank Capital acted as the Mandated Lead Arranger, working with United Bank for Africa ("UBA") Plc as co-arranging bank. Participating lenders were Afreximbank, BGFIBank Group, UBA Group, Banque Atlantique Group and the Ecobank Group. The closing ceremony was held in Paris, France on October 26th, 2013.
Orion is a privately held company whose principal activities include the physical trading of crude oil and refined products. The company focuses on the value chain of the oil & gas industry, supplying approximately 100,000 metric tons of refined products each month along the West African Coast and holding interests in oil & gas fields in Congo. Orion entered into a 24-month crude oil allocation program with SNPC, the largest oil & gas company in Central Africa. The proceeds of the debt facility will be used to fund the prepayment of the aforementioned crude oil cargos (amounting to circa USD 100 million per cargo) on a Free on Board basis.
This transaction is the largest loan syndication completed to date in Central Africa solely funded by regional African banks and for an indigenous company. It clearly showcases the increasing interest of regional banks in financing capital intensive oil & gas deals in Sub-Saharan Africa, channelled through the diligent syndication expertise of Ecobank Capital.
Mr. Ikenna Onyejiaka, Acting Managing Director of Ecobank Capital said: "This landmark transaction underscores Ecobank Capital's capabilities as a Lead Arranger of syndicated loans, working with Africa's key financial institutions to provide vital support to Congo's economic growth, especially at a time when the Eurozone crisis is threatening African businesses' access to international markets."
Ms. Foluke Aboderin, Executive Director of Ecobank Nigeria added: "Ecobank is proud to be associated with Orion Oil Limited, truly International Oil Company with a reputable track record. We are indeed excited to have participated in the USD 500 Million Pre-Export Financing with SNPC, Congo. For us at Ecobank, this transaction is undeniably strategic and represents what we are about - leveraging on our large footprint across middle Africa to support viable business for the development of our continent. Our expectations are that we would continue this strategic alliance/partnership with Orion in a manner that is mutually beneficial to both institutions."
Mr. Georges Wega, Managing Director of UBA Cameroon, said: "UBA Group's strong participation in this landmark deal underscores our passion to support African businesses and develop the economies of the continent. We look forward to doing more with more African businesses."
Mr. Jean-Louis Ekra, President of Afreximbank, observed: "Afreximbank is delighted to be part of this transaction which not only supports Orion Oil Ltd in consolidating its position as a leading indigenous player in the oil sector but significantly boosts the capacity of the Republic of Congo to meet the development needs of its citizens. The transaction is a reflection of Afreximbank's commitment to promoting trade and supporting local entrepreneurs."
Mrs. Patricia Danielle Manon, Managing Director of BGFIBank Gabon quoted: "Through a notable participation of USD 120 million in funding the Orion transaction, BGFIBank Group, the pre-eminent banking group in Central Africa, reaffirms its willingness to support the development of companies operating in strategic sectors bringing additional growth to African economies."
About the Ecobank Group
Incorporated in Lomé, Togo, Ecobank Transnational Incorporated (ETI) is the parent company of the leading independent pan-African banking group, Ecobank. It currently has a presence in 35 African countries, namely: Angola, Benin, Burkina Faso, Burundi, Cameroon, Cape Verde, Central African Republic, Chad, Congo (Brazzaville), Congo (Democratic Republic), Côte d'Ivoire, Equatorial Guinea, Ethiopia, Gabon, Gambia, Ghana, Guinea, Guinea Bissau, Kenya, Liberia, Malawi, Mali, Niger, Nigeria, Rwanda, Sao Tome and Principe, Senegal, Sierra Leone, South Africa, South Sudan, Tanzania, Togo, Uganda, Zambia and Zimbabwe. The Group is also represented in France through its affiliate EBI SA in Paris.
ETI also has representative offices in Dubai, United Arab Emirates, London, UK and Beijing, China. ETI is listed on the stock exchanges in Lagos, Accra, and the West African Economic and Monetary Union (UEMOA) – the BRVM. The Group has more than 600,000 local and international institutional and individual shareholders. The Group employs 19,200 people from 40 different countries in 1,250 branches and offices. Ecobank is a full-service bank providing wholesale, retail, investment and transaction banking services and products to governments, financial institutions, multinationals, international organizations, medium, small and micro businesses and individuals. Additional information may be found at http://www.ecobank.com
About Afreximbank
The African Export-Import Bank ("Afreximbank") was established in Abuja, Nigeria in October 1993 by African Governments, African private and institutional investors as well as non-African financial institutions and private investors for the purpose of financing, promoting and expanding intra-African and extra-African trade. Additional information may be found at http://www.afreximbank.com.
About BGFIBank Group
BGFI Bank Group is a financial services conglomerate, headquartered in Gabon, with subsidiaries in 10 countries in Central, West and East Africa. The member institutions serve both individuals and businesses, with an emphasis on small-to-medium enterprises (SMEs). In January 2010, BGFI Group was ranked as the largest banking group in Central Africa by assets. Additional information may be found at http://www.bgfi.com.
About UBA Group
United Bank for Africa Plc is one of Africa's leading financial institutions offering banking services to more than 7 million customers across 750 branches in 19 African countries. With presence in New York, London and Paris, UBA is connecting people and businesses across Africa through retail and corporate banking, innovative cross border payments, trade finance and investment banking. Additional information may be found at http://www.ubagroup.com.
About Banque Atlantique
Banque Atltantique is a banking group owned by the holding company Atlantic Business International ("ABI"), a member of the BCP Group. ABI owns seven (7) banking institutions in Benin, Burkina Faso, Côte d'Ivoire, Mali, Niger, Senegal and Togo, as well as financial services company and a computer engineering company. Banque Atlantique provides retail banking, online/internet banking and Mobile Banking products. Additional information may be found at http://www.banqueatlantique.net.
