African Export–Import Bank (Afreximbank) has entered into financing deals worth $1.2 billion with four African companies and a Memorandum of Understanding (MoU) with the African Union Development Agency (AUDA-NEPAD).
A breakdown of the transactions, which was consummated in Durban, South Africa, indicated that $750 million deal was signed in the name of Eroton Exploration and Production Company Limited.
According to the bank, the facility was issued to Eroton to finance the acquisition of 100 per cent of the shares into special purpose vehicles, oil mining lease, under secured reserve based lending facility, and also to finance the prepayment of all of Eroton’s outstanding exposures with its existing lender. This has taken two years to come to fruition.
Further breakdown of the deal showed that Oakmill Group International signed $210 million project finance facility while $100 million trade finance facility was in favour of Harvest Group of Companies.
Additionally, $110.4 million syndicated term loan facility was signed in favour of Zimbabwe Electricity Transmission and Distribution Company (ZETDC).
Speaking at the signing ceremony, Chairman of Eroton, Onajite Okoloko said: “It is really a pleasure being here especially for this transaction. We have worked with Afreximbank for almost two years. “This is a big milestone for us and it would help Eroton in its expansion programme and enable it monetise oil and gas assets, reserves that exists in Nigeria.
“This is a big day for us. And we are really excited that this transaction is finally coming to a close. I want to thank you all for being to witness this and celebrate with us as we sign this particular deal,” he said.
Also commenting on the deal, Global Head Client Relations, Afreximbank, Rene Awambeng, said “Today the main stage of IATF 2021, Afreximbank is signing a project finance facility and trade finance facilities for Oakmill Group of companies.
“Afreximbank is active in leading all participating banks in the past decade in financing infrastructure projects across Africa. In this capacity, Afreximbank will be issuing a non-binding letter of interest to Oakmill Group International and Harvesting Group of companies to provide project financing with respect to the proposed construction and commissioning of 300 million litres refined petroleum products storage facilities in Zambia.