A Review of the Nigerian Energy Industry

Nigeria: Oando/ConocoPhillips deal earns FBN Capital recognition

FBN Capital
FBN Capital

05 March 2015, Lagos – FBN Capital Limited has been awarded the ‘Africa Oil and Gas Deal of the Year Award’ for the Oando Energy Resources, OER, $350 million ConocoPhillips assets acquisition deal. The bank said in a statement that the award was conferred on it at the prestigious IJGlobal Europe & Africa Awards 2014, organised by the Infrastructure Journal & Project Finance Magazine in London recently.

FBN Capital, a subsidiary of FBN Holdings Plc, said it acted as Joint Mandated Lead Arranger and financial modeling bank for the Corporate Facility to part-fund purchase of ConocoPhillips’ participating interest in Oil mining leases, OMLs 60, 61, 62, 63, 131 and 145 by Oando.

It further revealed that the total consideration for the acquisition of approximately $1.6 billion was financed via a combination of debt and equity, with the debt portion of the acquisition facility comprising of a $450 million RBL Facility provided by both Nigerian and offshore banks; and a $350 million Corporate Facility provided by Nigerian banks.

“The funds were provided by First Bank of Nigeria, Diamond Bank, FCMB, Ecobank, Zenith Bank, UBA, Vitol, and Enterprise Bank. Other financial parties to the transaction include FBN Trustees as Security Agent; First Bank of Nigeria as Hedge Provider; and FCMB Capital Markets also as Joint Mandated Lead Arranger,” it added.

Speaking on the award, the Managing Director of FBN Capital, Mr. Kayode Akinkugbe, was quoted as saying, “We are very pleased to have won this award, and remain inspired by the trust our clients place in us to help them achieve success. We will continue to strive to raise the bar on industry standards with regards to deal-making and structuring.”

Also, the Director/Head, Debt Solutions, FBN Capital, Mr. Patrick Mgbenwelu, expressed his pleasure at the bank being honoured and recognised “for the effort that the client, every member of the team, as well as every party to the transaction put into making this deal reality.”

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