The initial portion of a $2.5 billion facility, facilitated by the African Export-Import Bank (Afrexim Bank) and locally arranged by the United Bank for Africa (UBA), has been received by Nigeria.
UBA, a prominent member of the FUGAZ group, has been designated as the mandated local arranger for this significant US$2.5 billion liquidity support facility for Nigeria.
Afrexim Bank, playing a critical role in this financial endeavour, is the Mandated Lead Arranger for the structured finance facility.
In this strategic financial arrangement, Afrexim Bank, in its capacity as the Mandated Lead Arranger, closely collaborates with the United Bank for Africa, which assumes the role of the Local Arranger. NNPC Limited acts as the principal financier, and key participants in the transaction include Guvnor and Sahara Energy, showcasing the collaborative effort of multiple stakeholders.
The transaction details reveal a total value of US$3.3 billion, earmarked as liquidity support for Nigeria to address its foreign exchange (forex) challenges. The first tranche, totaling US$2.25 billion, is set to be deposited into a specified account at the Central Bank, aimed at alleviating forex liquidity pressures.
UBA, serving as the Local Arranger, and Afrexim Bank, acting as the Mandated Lead Arranger, play pivotal roles in facilitating this financial arrangement. UBA also functions as the Onshore Depository Bank for the transaction.
NNPC spearheads the financing of this transaction, with major oil trading firms such as Sahara Energy, Vitol, Oando, and Gunvor participating as sub-lenders. Additionally, each of these entities, along with UBA, has contributed $100 million to the facility.
Notably, Gunvor, a leading global commodities distribution company with approximately $150 billion in annual revenues, is part of this collaborative effort.
Sources further reveal that the coupon for the transaction is set at a substantial 11% per annum.
