United Capital Plc has successfully achieved financial close on the US$250 million Tranche One crude prepayment facility for Orion Oil from a syndicate of three Pan African banks. The second Tranche of US$330 million will achieve financial close in the second Quarter of 2016. In addition to United Capital’s role as Structuring Bank, it will also act as Facility Agent and Security Trustee to lenders on the facility.
United Capital syndicated the facility through three Pan African institutions: United Bank for Africa and its subsidiaries across Africa (US$100 million), Africa Export Import Bank, Egypt (US$100 million) and Banque Gabonaise et Française Internationale, Gabon (US$50 million). Despite the recent fall in oil prices, the US$250 million crude prepayment facility is the largest reported transaction structured by an African investment bank in 2015 involving the raising of fresh capital within the African market.
“As a Group focused on providing strategic investment banking and financing solutions to our clients across the continent, our roles as Debt Advisor, Structuring Bank, Facility Agent and Security Trustee is a true testament to our ability to provide multiple services within our Group. We are very happy to support the Orion Group on this transaction and look forward to continuing our relationship through other deals of this magnitude on the continent,” stated Oluwatoyin Sanni, Group CEO, United Capital Plc.
As the Structuring Bank, United Capital is responsible for the overall transaction coordination, structuring and syndication for Tranche One (US$250mn) and Tranche Two (US$330mn) of Orion’s prepayment facility to SNPC. The facility will run for a period of four years with a repayment period of three years. “The expert capabilities of our Project Finance Team in structuring a transaction that attracted funding from notable Pan-African banks was critical in achieving financial close” stated Wale Shonibare, Managing Director of United Capital’s Investment Banking division. Kolapo Joseph, Director, Project Finance at United Capital leads the team as they prepare for the Second Tranche, which will take place in early 2016.