Mar 18, 2018 Last Updated 10:53 AM, Mar 16, 2018

Nigeria awards $1.4 billion loan to Seplat

ABN – Indigenous oil producer Seplat has been awarded a US$1.4 billion loan from five Nigerian banks.

United Bank for Africa (UBA), Zenith Bank, First Bank of Nigeria, Standard Bank and Stanbic IBTC Bank pulled together their resources to provide the loan.

A $700 million seven year secured term package is included in the loan with an option to upsize by a further $700 million for acquiring opportunities.

It is hoped that the loan will refinance Seplat’s existing debt to strategically position the company for future oil and gas opportunities in Nigeria.

International banks also provided a $300 million three year secured revolving credit facility.

Seplat CEO Austin Avuru said: “This successful re-financing, which commenced several months ago, significantly enhances our already robust capital structure and underscores the quality of our asset base.”


Chevron offers to help struggling Eskom

ABN – US oil giant Chevron has offered to donate surplus diesel from its Cape Town refinery to help run the generators of struggling South African power provider Eskom.

Steve Hegarty, general manager of Chevron’s South African unit, told the country’s trade and industry committee that Chevron had reserved some diesel to help Eskom continue generating electricity.

Eskom is at risk of being declared insolvent this year as it struggles to provide a sufficient and consistent power supply to Africa’s most advanced economy.

It has resorted to a load-shedding scheme of controlled power cuts to prevent the power grid from collapsing under pressure.

The national utility company is struggling financially and was downgraded to ‘junk status’ by financial rating agency Standard & Poor after its CEO and three other senior executives were suspended.


Oracle Biofuels Limited seeks investment

ABN – Oracle Biofuels Limited is currently seeking US$500 million for the construction of renewable energy processing plants across Zambia.

The plants will range from bio-diesel and electricity to organic fertiliser and aviation fuel.

Zambia recently introduced a Renewable Energy Feed-in-Tariff Policy (REFiT), which led the company to seek investments for its projects.

Oracle executive direct Emmanuel Mbita said: "We want to raise about $500 million to kick-start production of various renewable energy products, especially that the REFiT policy has been formulated by the Government.

“This will give impetus for players in the market to approach partners and funders." 


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