Standard Bank Reaches Financial Close On $250 Million Facility For Nigeria’s Aradel Energy
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Standard Bank said it has reached financial close on a $250 million strategic financing facility for Aradel Energy Ltd, with the Nigerian oil company set to use part of the funding to support its acquisition strategy.
The companies said the facility will help finance Aradel’s purchase of an additional 40% equity stake in ND Western Ltd from Petrolin Trading Ltd.
Aradel said it currently holds 41.67% of ND Western, and that the transaction would raise its interest to 81.67% once completed.
According to the statement, ND Western holds a 45% participating interest in the OML 34 oil and gas asset and a 50% equity interest in Renaissance Africa Energy Company Ltd, which operates the Renaissance Joint Venture and owns 30% of a major Nigerian energy portfolio.
Aradel said the deal will increase its indirect equity interest in Renaissance to 53.3%, strengthening its upstream position, while the financing will also be used to refinance existing loans and support higher output from its current assets.
Aradel Energy, a wholly owned subsidiary of Aradel Holdings Plc, operates the Ogbele and Omerelu onshore marginal fields and OPL 227 in shallow-water terrain, and Standard Bank said it acted as global coordinator and bookrunner on the transaction.
