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HomeBusinessNigerian firms sign over $1bn deals at IATF

Nigerian firms sign over $1bn deals at IATF

Nigerian companies and sub-national have signed deals worth over $1bn with the African Export-Import Bank at the Intra-Africa Trade Fair in Cairo, Egypt.

The trade fair, which was held between Friday and Wednesday, saw Oando Plc emerging as the largest beneficiary as it sealed a $800m syndicated dual facility deal with Afreximbank.

The financial package comprised of a $500m Senior Secured Reserve Based Lending facility and a $300m Receivables Backed Term Loan facility.

It was revealed that the aim of the deal was to fuel a strategic acquisition of a 20 per cent participating interest in the Nigerian Agip Oil Company Limited. This includes Oil Mining Leases 60, 61, 62, and 63, as well as the entire issued share capital of NAOC, acquired from Eni S.A.

Also, United Bank for Africa Plc signed $150m trade finance facility agreement under the Ukraine Crisis Adjustment Trade Financing Programme for Africa.

The facility is expected to enhance confidence in the settlement of international trade transactions for strategic imports.

The Group Managing Director of UBA, Oliver Alawuba, said the facility would further boost the quest to deepen intra-Africa trade, which had been severely constrained by the impact of the war in Ukraine.

“We have a long-standing beneficial relationship with Afreximbank. We are delighted with our partnership as we jointly envision better dealings for our customers,” Alawuba said.

Another financial institution, Sterling Bank Plc, signed a deal worth $75m with Afreximbank to promote non-oil exports within and outside Africa.

According to a statement from the bank, the deal is crucial in financing and deepening trade activities in Nigeria.

Anambra State also signed a deal with Afreximbank at the IATF.

On the second day of the trade fair, Afreximbank signed a mandate letter to provide capital raise financial advisory services to the Anambra State Government for an estimated $200m facility to support the development of three major projects in the state.

The facility covers the Ikenga Mixed-Use Industrial City Project, the Anambra Export Emporium and the Akwaihedi Unubi Uga Automotive Industrial Park.

The continental bank added that it signed “An agreement to provide the state government with financial advisory services for the development of operational and governance framework for the Anambra Diaspora Fund, including capital raise financial advisory services for the Anambra Intra-City Rail Master Plan project and the Anambra Diaspora Fund”.

Executive Vice President, Intra-African Trade Bank, Kanayo Awani, signed for Afreximbank while Chief Executive Officer, Anambra State Investment Promotion and Protection Agency, Mark Okoye, signed on behalf of the state government.

Meanwhile, the International Centre for Regional Integration and Trade Research at the Nnamdi Azikiwe University, Awka, Nigeria, signed a Memorandum of Understanding with Afreximbank.

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