Stanbic IBTC Holdings and its parent company, Standard Bank Group of South Africa, have partnered with Eland Oil & Gas, on a new accordion facility and increased borrowing base of $50 million, about N18 billion.
In November 2018, Eland Oil & Gas, an oil and gas production and development company operating in West Africa with an initial focus on Nigeria, had announced that it had successfully refinanced its existing reserve-based lending facility with a new five-year syndicated RBL facility in an amount of $75 million, with the option to increase it to up to $200 million via an accordion, subject to incremental production and reserves.
Stanbic IBTC stated that the deal was an opportunity to support Eland Oil & Gas’ business expansion drive in the oil and gas industry.
Stanbic IBTC stated that it would continue to leverage its excellent investment banking pedigree as well as the strength of its franchise in the Standard Bank Group, the largest financial institution in Africa, to consummate such big ticket deals that will not only help businesses grow but also help deepen key industries.
Stanbic IBTC reiterated its commitment, in line with the Stanbic IBTC Group’s value proposition and investment banking pedigree, to continue to assist businesses with high quality advisory and arranging services that will enhance their growth and expansion prospects by providing access to a diverse range of financing options.
The oil and gas company announced that following a redetermination, the borrowing base amount increased from $103 million to $134 million and an initial accordion increase of $50 million is being underwritten by Standard Bank of South Africa and Stanbic IBTC Bank PLC, resulting in the commitments under the facility increasing from $75 million to $125 million. Of the commitments, $50 million is currently drawn.
Chief Financial Officer, Eland Oil & Gas, Ron Bain, who spoke on the deal, said the large increase in borrowing base on the company’s RBL facility, demonstrates the hugely accretive quality of the new wells drilled on the OML 40 asset and the growth in value they bring to shareholders.
Source: The Nation