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FBN, Ecobank Seal $170m Financing Deal

News » Business




Story:  Eromosele Abiodun


Seven Energy International Limited and its wholly-owned subsidiary, Accugas Limited have closed a $170 million 5-year medium-term acquisition finance facility with FBN Bank (UK) Limited and Ecobank Nigeria Limited.

FBN Capital Limited acted as the structuring bank, sole initial mandated lead arranger, and financial modelling bank, as well as global facility coordinator, while Aluko & Oyebode acted as the lender’s legal counsel. Royal HaskoningDHV Nederland BV represented the lenders on environmental and technical due diligence matters.

Also, UUBO and Addleshaw Goddard acted as the Borrower’s local and international legal counsels respectively.

FBN Capital in a statement yesterday said the facility part-finances the acquisition of the entire issued share capital of East Horizon Gas Company Limited for a total consideration of up to $250 million.

Commenting on the transaction, the Managing Director/Chief Executive Officer of FBN Capital Limited, Mr. Kayode Akinkugbe, said: “FBN Capital is very proud of the instrumental role it played in assisting Seven Energy to structure and arrange the financing for the acquisition."

He went further to state that the: “FBN Holdings Group feels a strong sense of responsibility towards fostering growth in the power, gas pipeline and oil and gas sectors and we will continue to deploy our extensive debt arranging experience and structuring expertise in executing robust transactions in record time.”

On his part, Director and Head Debt Solutions, FBN Capital Limited, Patrick Mgbenwelu, said: “We appreciate the responsibility and trust Seven Energy has placed with FBN Capital to advise and arrange the financing for the acquisition of EHGC.

“FBN Capital remains committed to further strengthening this relationship and supporting Seven Energy in realising its various financing goals and objectives.”
Speaking on the transaction, the Chief Executive Officer, Seven Energy, Phillip Ihenacho, said: “This is a landmark transaction for us.  We are delighted to expand our midstream operations in Nigeria with this investment.

“It is a perfect fit to our strategy of investing in core midstream infrastructure assets in the south east region of the country.  I would also like to thank the entire team for their achievement in bringing this important financing transaction to a close.”

The Chief Financial Officer, Seven Energy, Bruce Burrows, commended the Lenders, FBN Bank (UK) Limited and Ecobank Nigeria Limited, for their support, and in particular, their dedication to ensure that the completion of the EHGC acquisition process was in line with the sponsors’ timetable.

Article Credit: ThisDay newspaper

Updated 5 Years ago

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Tags:     FBN Bank (UK) Limited     Patrick Mgbenwelu     Mr. Kayode Akinkugbe     Phillip Ihenacho     Bruce Burrows     Ecobank Nigeria Limited     Seven Energy International Limited     Accugas Limited