Seplat Petroleum seals US$1.4B loan deal with FBN Capital and Nigerian lenders

Posted by Amechi Obiakpu | 24 April 2015 | 3,466 times

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Seplat Petroleum Development Company Plc., a leading indigenous oil and gas exploration and production company, listed on both the Nigeria Stock Exchange and London Stock Exchange, closed a new US$700 million seven-year secured term facility in January 2015.

The facility, which was closed with a consortium of banks in Nigeria with FBN Capital acting as Structuring Bank. includes an option to upsize by up to an additional US$700 million for qualifying acquisition opportunities. .

FBN Capital said in a statement that the new facility, alongside a new US$300 million three-year secured revolving credit facility provided concurrently by international banks, refinanced Seplat’s existing debt portfolio to ensure a robust capital structure and strategically position the Company for future oil and gas acquisition opportunities in Nigeria.

Chief Executive Officer of Seplat, Austin Avuru, noted that his organization is pleased to have extended its banking relationships with several existing and new lenders, both Nigerian and international.

“This successful re-financing, which commenced several months ago, significantly enhances our already robust capital structure and underscores the quality of our asset base.”

Managing Director FBN Capital Limited, Kayode Akinkungbe said: “FBN Capital is very proud of the instrumental role it played in assisting Seplat to structure the local financing to optimise its capital structure.”

He stated that the FBN Holdings Group is delighted to assist the growth of indigenous oil & gas companies within the sector and will continue to deploy its extensive debt arranging experience and structuring expertise in executing complex and robust transactions in record time.”

Speaking on the transaction, Director and Head Debt Solutions, FBN Capital Limited, Patrick Mgbenwelu, stated: “We appreciate the responsibility and trust Seplat has placed with FBN Capital to assist in structuring the local refinancing of Seplat’s existing debt portfolio. Given our role as Technical Bank, FBN Capital remains committed to ensuring the robustness of the entire local financing and look further to strengthening this relationship and to support Seplat in realising their future financing goals and objectives.”

•Photo shows Kayode Akinkungbe, MD, FBN Capital.


Source: News Express

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