FCMB Capital Markets Limited, FBN Capital Limited along with some other financial institutions in Lagos, Wednesday, facilitated in the closing of $445 million syndicated medium-term facility for Accugas Limited.
Accugas, a wholly owned subsidiary of Seven Energy International Limited, is the gas processing, marketing and distribution arm of the Seven Energy Group.
The facility is to enable Accugas refinance its existing loan facilities and to meet additional funding needs. This will also help it achieve its overall objective of satisfying the growing gas demand from power plants and industrial users in Nigeria.
The other banks that provided the facility are Ecobank Nigeria, Union Bank, and United Bank for Africa.
Speaking with BusinessDay on the sidelines of the event, Tolu Osinibi, executive director, FCMB Capital Markets, said the investment bank was satisfied by the consummation of the deal, promising that despite the economic downturn that had affected its capacity to render huge lending assistance to clients, it would continue to do its best within the ambit of its capability.
“It is all about supporting a client that is actively making significant contributions to Nigeria’s energy space. The investment they are making in gas infrastructure is critical to the country’s energy development. And it has been said more often than not that one of the major problems we face in this regard is lack of gas infrastructure. That is what Accugas is doing. So, for us at FCMB Group, this is very exciting opportunity for us to support a company that has actually focused on Nigeria’s infrastructure development to boost energy,” Osinibi said.
Also, Kayode Akinkugbe, managing director, FBN Capital, said: “FBN Capital is very proud of the instrumental role it played in assisting Accugas to structure and arrange this financing for the Borrower. “The successful signing of this financing shows that lenders see the Accugas business as a catalyst for economic development in Nigeria.”
Commenting on the transaction, Bruce Burrows, chief financial officer, Seven Energy, said “we commend the professional and efficient work by the FBN Capital team, along with all other parties involved in this transaction. We are pleased to have partners who support our vision to bring gas to Nigeria’s domestic market for power generation and industrial consumption.”
Phillip Iheanacho, group chief executive officer, Seven Energy, described the transaction as a milestone.
“For us, it demonstrates the confidence that banks have in financing projects in the gas sector. To be able to develop domestic gas infrastructure and solve the problem in the power sector in particular, we need to be able to mobilise capital for project of this nature,” Iheanacho said.
Zebulon Agomuo
