United Bank for Africa Provides $200 Million for Nigeria's Petroleum Industry

Proshare

Wednesday, August 05, 2020 / 08:17 PM / By UBA Plc / Header Image Credit: Ecographics


Proshare Nigeria Pvt. Ltd.


Highlights

  • United Bank for Africa Provides $200 Million for Nigeria's Petroleum Industry - Timely Financing For Post COVID Economic Growth

  • Acts as Lead Arranger for $1.5 Billion Facility to Boost Nigerian Oil Production and Government Revenue

The United Bank for Africa Plc (UBA), the leading pan-African financial services group, has acted as an Initial Mandated Lead Arranger with a consortium of Nigerian commercial and international banks in a $1.5 Billion Pre-Export Finance Facility for Eagle Export Funding Limited, to enable the forward sale of crude by the Nigerian National Petroleum Corporation (NNPC) and its upstream subsidiary, the Nigerian Petroleum Development Company (NPDC).

UBA is providing $200 million (Naira equivalent) towards the crude oil sale, to support investment growth and liquidity requirements. The forward sale will provide much needed capital for investment in NNPC's production capacity, which is of strategic importance to the Nigerian economy and the country's leading source of foreign exchange earnings. UBA's position as Mandated Lead Arranger recognises the Group's strength in structuring and deploying financing to the oil and gas sector, and the depth and liquidity of the Group's balance sheet.

UBA has a strong track record in the resources sector across Africa, having facilitated similar oil prepayment deals with the NNPC. UBA was also responsible for the EUR 240m Revolving Crude Oil Financing Facility for the Société Africaine de Raffinage and in Congo Brazzaville co-funded the $250m crude oil prepayment facility for Orion Oil Limited.

Other participants in the Eagle Export Funding Limited deal include Standard Chartered Bank, Afrexim Bank, Union Bank and two oil trading companies, Vitol and Matrix.

Speaking on this most recent support for the Nigeria's petroleum industry, UBA Group Chairman, Tony O. Elumelu stated 'This has been one of the most economically challenging years that Nigeria has witnessed. With the sharp drop in the price of oil and the ensuing hardship that followed the onset of the Covid-19 pandemic, the private sector must come together and contribute meaningfully to the economy. This facility is clear evidence of this – UBA is providing investment that will significantly improve Nigeria's production capacity and in doing so also demonstrating the strength, depth, and sophistication of our commercial banking capability. I believe that together, working with governments, we can create more jobs and more wealth for people, not only in Nigeria, but across Africa'.

The United Bank for Africa is one of the largest employers in the financial sector on the African continent, with over 20,000 employees and serving over 20 million customers. UBA operates in 20 African countries and globally in the United Kingdom, the United States of America and France, providing retail, commercial and institutional banking services, leading financial inclusion and implementing cutting edge technology.

  

Proshare Nigeria Pvt. Ltd.

  

UBA Related News

1.      UBA Reacts to False Media Reports Alleging of N41bn Fraud Involving NITEL in Liquidation - Aug 03, 2020

2.     UBA Notifies of Dealing in 2.2m Volume of Shares by Tony O. Elumelu, CON Heirs Holdings Ltd - Jul 23, 2020

3.     Moody's Announces Completion of a Periodic Review of Ratings of UBA Plc - Jul 09, 2020

4.     UBA Group Announces Appointment of Deputy Managing Directors for Nigeria and Africa - Jul 07, 2020

5.     UBA Hosts Airtel CEO in Quarterly Business Series, Calls for Registration of Business, SMEs Owners - Jun 28, 2020

6.     UBA Notifies of Dealing in 4.2m Volume of Shares By Tony Elumelu and Seven Others - Jun 10, 2020

7.      UBA Q4 2019 and Q1 2020 Results Review: Sizable Upside Potential Despite Cut to Price Target - May 29, 2020

8.     Post COVID-19: Global Leaders at UBA Africa Day Conversations Seek Path to Economic Recovery - May 26, 2020

9.     UBA Upgrades Mobile App, Introduces Exciting New Features for Customers - May 19, 2020

10.  Q1 2020: In Spite Of Business Upsets, UBA Records Impressive N32.7bn Profit - Apr 24, 2020

 

 

Proshare Nigeria Pvt. Ltd.


Related News

11.   Oil Prices Climb Despite Growing Demand Fears - OIR 040820

12.  NBCC Forum: Experts Call For Increased Investments In Oil and Gas Mid-Stream Production

13.  Economic Turmoil Leaves Oil Trapped At $43 - OIR 310720

14.  OPEC Prepares For Long-Term Demand Risks - OIR 280720

15.  Mining: Resuscitation of Ajaokuta Steel Company - An End in Sight?

16.  Oil Prices Stuck At $42 - OIR 240720

17.   Large And Unexpected Crude Build Halts Oil Rally

18.  Oil Jumps on the Prospect of Two Trillion-Dollar Stimulus Packages - OIR 210720

19.  OPECplus Cuts Tapering Reflects Recovering Oil Demand

20. Oil Market Tightens As Second COVID Wave Looms - OIR 170720

21.  Average Prices of PMS, AGO, HHK and Cooking Gas - June 2020

22. Oil and Gas Update: Downstream Oil and Gas at a Crossroads

23. OPEC-Plus News Is Holding Oil Prices Back - OIR 140720

24. Oil Returns to $42 After COVID Correction - OIR 100720

25. Movement in Oil Prices and What It Means for Nigeria

 

 Proshare Nigeria Pvt. Ltd.

Proshare Nigeria Pvt. Ltd.

READ MORE:
Related News
SCROLL TO TOP