FBN Capital Limited and four banks –namely First Bank of Nigeria Plc, United Bank for Africa plc, FCMB plc and Stanbic IBTC Tuesday sealed an infrastructure financing deal for Seven Energy International Limited and its wholly owned gas processing, marketing and distribution company Accugas Limited.
Accugas Limited will utilise the facility towards refinancing the existing $55 million debt secured for the Akwa Ibom gas pipeline project, with the balance of $170 million to be used towards part financing the cost of expanding its gas processing facilities and building a new gas pipeline to supply gas to the Calabar NIPP power plant.
FBN Capital Limited (a subsidiary of FBN Holdings Plc), acted as the Global Coordinator Bank, Financial Modeling Bank and also undertook the role of de-facto Financial Adviser to the Borrower; while UBA, First Bank of Nigeria Plc, Stanbic IBTC and FCMB, jointly acted as Mandated Lead Arrangers on the transaction.
The Calabar Project is the second phase in AccuGas’ gas processing and distribution development programme aimed at bringing the substantial gas reserves from the South East Niger Delta to market to meet the growing energy demand from power plants and industrial users in the region.
It involves the construction of a 37km gas pipeline from the Uquo gas field in Akwa Ibom state to Oron for delivery of 131 MMscfpd of gas to the 560MW power plant in Calabar.
Construction of this new pipeline is scheduled to be completed in July 2014.
Stephen Tierney, Managing Director, Accugas Limited, who commended the banks for their support also said: “I thank FBN Capital for creating a bankable commercial chain that will benefit this project. From my perspective, things are looking very good. This becomes a stepping stone for us to go on and achieve our goals.”
Kayode Akinkugbe, Managing Director & Chief Executive Officer of FBN Capital Limited said: “FBN Capital is very proud of the instrumental role it played in assisting Accugas to structure and arrange the financing for the project.”
He added, “The successful signing of this financing show that lenders see Accugas as a robust project that will bring sound economic benefits to Nigeria.”
OLUSOLA BELLO &