13 Nigerian banks support Oando’s growth aspirations
- Complete N60billion facility
Oando PLC, Nigeria’s largest indigenous energy group, is pleased to announce that it has concluded and drawn down on a N60 billion facility provided by thirteen leading financial institutions in Nigeria. The financing, coordinated by the mandated Lead Arrangers First Bank, Guatanty Trust Bank and StanbicIBTC Bank, is a five year Medium Term Note (MTN) to aid the company’s commitment to sustain profitability and enhance growth.
Oando’s investments across the energy value chain have ensured continued asset creation irrespective of the pressures of the market space. Some of the company’s key investments include 600 retail stations, 100 km of gas pipeline in Lagos, 124km gas pipeline in development in the South East, five swamp drilling rigs, and interest in over 11 oil & gas exploration and production fields including a producing deepwater asset.
Commenting on the transaction, Mr. Wale Tinubu, Group Chief Executive, Oando PLC, said; At Oando, our strong fundamentals and discipline in meeting obligations, has consistently been recognised by bankers locally and internationally. This funding further reinforces the confidence of the banks in the robustness of our diversified earnings platform. In challenging situations, only companies with sound investment cases and definitive growth profiles will attract such overwhelming support from discerning financial institutions.’
The institutions involved in the financing are; Access Bank, Bank PHB,Citibank, Ecobank, First Bank, First City Monument Bank, GuarantyTrust Bank, Oceanic Bank, StanbicIBTC, Sterling Bank, UBA, Unity Bank, and Zenith Bank.
According to Mr. Femi Adeyemo, Oando’s Group Chief Finance Officer, We are encouraged by the confidence reposed in us by banks, shareholders and the investing public in general. Our recently oversubscribed N21 billion Rights Issue, the continued backing of banks- locally and internationally, and the unwavering support of our investors have sustained our track record of an average of 50% year-on-year increase in profitability over the last five years. This Medium Term Note will provide the much needed liquidity for growth in our subsdiaries’.
Oando is one of the non-banking institutions that have raised in excess of $US500 million in medium to long term facilities in the local and international debt markets in recent times to fund operations and growth. Oando recently posted a N3.1 billion Profit After Tax for the first quarter of 2010, representing a 73% increase relative to the same period of 2009. Pre-tax profit also grew by 109% to N5.1 billion and turnover was N91.3 billion, an 18% achievement compared to the same period in 2009.
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