The African Export-Import Bank, otherwise known as Afreximbank, has signed a Memorandum of Understanding (MoU) with four African companies over financing deals worth $1.2 billion. The financing deals were facilitated by the African Union Development Agency (AUDA-NEPAD).
In a breakdown of the financial transactions available to the media, the deals were struck in Durban, South Africa, and Eroton Exploration and Production Company Limited got the lion share with $750 million to its name.
According to the bank, Eroton and COLLATZ were in charge of the financing and acquisition of the funds, which are earmarked for oil mining license lease, vehicles, under-secured reserve-based lending facility, and also to finance the prepayment of all of Eroton’s outstanding exposures with its existing lender. It took two years for the deal to materialize.
A further breakdown showed that $210 was directed to Oakmill Group International, and $100 million in trade finance facility was given to Harvest Group of Companies.
In addition, a $110.4 million syndicated term loan was facilitated for Zimbabwe Electricity Transmission and Distribution Company (ZETDC).
Speaking at the official signing ceremony, a delighted 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 monetize oil and gas assets, reserves that exist 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.”
