In an effort towards expanding its gas infrastructure assets in the country, Seven Energy International Limited and its wholly-owned subsidiary, Accugas Limited, have closed a $170 million 5.5-year medium-term acquisition facility deal with Ecobank Nigeria Limited and FBN Bank (UK) Limited.
The facility, which partly finances the acquisition of the entire issued share capital of East Horizon Gas Company Limited (EHGC) for a total consideration of up to $250 million, was closed on Monday, March 31, 2014.
Kayode Akinkugbe, Managing Director and Chief Executive Officer of FBN Capital Limited, 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 further said that FBN Holdings Group feels a strong sense of responsibility towards fostering growth in the power, gas pipeline and oil and gas sectors and will continue to deploy its extensive debt arranging experience and structuring expertise in executing robust transactions in record time.
While FBN Capital Limited acted as structuring bank, sole initial mandated lead arranger, financial modelling bank and global facility coordinator, Aluko & Oyebode acted as lenders legal counsel. Royal Haskoning DHV Nederland BV represented the lenders on environmental/technical due diligence matters, and UUBO and Addleshaw Goddard acted as the borrower’s local and international legal counsels, respectively.
EHGC, a gas distribution and marketing company, was established by Oando Plc with the intention of constructing and operating an 18-inch, 128km gas pipeline that connects with the Obigbo-ALSCON pipeline at Ukanafun to supply gas to an industrial off-taker located in Mfamosing, Cross River State, and to meet the needs of other industrial users in the Calabar region.
Seven Energy’s acquisition of EHGC is in line with its strategic plans to expand its gas infrastructure assets in the South East and Niger Delta.
Phillip Ihenacho, Chief Executive Officer, Seven Energy, 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.”