Oando Plc has announced the successful upsizing of its Reserve Based Lending (RBL2) facility to $375 million. The refinancing, led by the African Export-Import Bank (Afreximbank) with the support of Mercuria, extends the final maturity date of the facility to January 30, 2029.
This successful refinancing underscores the confidence of leading financial institutions in Oando’s strategic direction and its ability to capitalise on its expanded asset base to drive growth and value creation in the Nigerian energy sector and beyond.
In recent years, financing arrangements for the acquisition, development, and operation of oil and gas assets have commonly been structured as Reserve-Based Loans (RBLs). Under this model, the amount a borrower, in this instance Oando, can access is directly tied to the size and value of their proven reserves, with Oando’s standing at 1.0 Bnboe —referred to as the Borrowing Base.