The African Export-Import Bank (Afreximbank) has announced an additional disbursement of $925m under the syndicated $3.3bn crude oil-backed prepayment facility sponsored by the Nigerian National Petroleum Company (NNPC) Limited to the Federal Government.

A statement by the bank on Thursday said the development brings the total current funded facility size to $3.175bn.

Arranged and coordinated by Afreximbank, the accordion arrangement saw the raising of a combined total of $925m from a consortium of crude oil off-taker lenders, including but not limited to the Oando Group and Sahara Energy Resource Limited.

Afreximbank said it acted as the Mandated Lead Arranger, Technical and Modelling Bank, Bookrunner, Facility Agent, Offshore Account Bank, Intercreditor Agent, and Collateral Agent for the transaction, expected to provide further support for Nigeria’s macroeconomic stability and long-term economic growth while enhancing the country’s industrialisation and trade development efforts.

The announcement followed the first tranche of the $3.3bn facility.

In December 2023, the project received funded commitments totalling $2.25mn. The $925m arrangement raises the total amount disbursed to $3.175bn.

Commenting on the disbursement, the President and Chairman of the Board of Directors of Afreximbank Benedict Oramah said: “The milestone achieved thus far, on this facility, demonstrates the Bank’s capabilities in performing its role as a crucial development partner for Africa.

“It reaffirms our commitment to assisting our member states in their efforts to achieve economic growth and stability. This funding will greatly support the attainment of Nigeria’s short and long-term economic development priorities.”

Oramah described the original facility as ‘a landmark’ for being the largest crude oil-backed facility in Nigeria and one of the largest syndicated debts raised in Africa, adding that the closure of the first accordion demonstrated the existence of positive market appetite for well-structured commodities-backed instruments.

The Group Chief Executive Officer, NNPC Limited Mele Kyari commended Afreximbank Management and team for their investment philosophy and active interest in co-creation of prosperity.

“The successful disbursement of the first accordion under project Gazelle and its interest in funding viable and strategic projects is a clear indication of investors’ confidence in NNPCL and Nigeria’s growth aspirations,” Kyari said.

He further assured Afreximbank and all investing communities of NNPCL’s resolve, to continue to grow the nation’s hydrocarbon resources and strengthen its partnerships across the oil and gas value chain locally, and globally.

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