OANDO PLC - Oando PLC Secures 5 Year, N94.6 Billion Medium Term Facility with a Syndicate of Nigerian BanksRelease Date: 07/06/2016 09:50:00 Code(s): OAO
(Incorporated in Nigeria and registered as an external company in South Africa)
Registration number: RC 6474
(External company registration number: 2005/038824/10)
Share Code on the JSE Limited: OAO
Share Code on the Nigerian Stock Exchange: OANDO
Oando PLC Secures 5 Year, N94.6 Billion Medium Term Facility with a Syndicate of
Lagos, Nigeria ? Oando PLC (referred to as ?Oando? or the ?Group?), Nigeria?s leading
indigenous energy group listed on both the Nigerian and Johannesburg Stock Exchange,
today announces conclusion of a N94.6 Billion facility provided by ten leading financial
institutions in Nigeria. The financing, coordinated by the mandated Lead Arranger, Access
Bank Plc, is a 5 year Medium Term Note (MTN) at Nibor + 200 bps as a crucial part of our
strategic restructuring plans.
Commenting on the transaction, Mr. Wale Tinubu, Group Chief Executive, Oando PLC, said
?In a bid to return to profitability in 2016, I am happy to announce the successful completion
of restructuring our overall debt profile into a N94.6 Billion Medium Term, 5 year
consolidated facility, with a 3 year moratorium on principal. This is the pivotal leg in our
Group restructuring plan of Growth; via the Upstream business, Deleverage; via the disposal
of $350 million in assets? value in 2016 and our return to Profitability in 2016, driven by our
dollar earning oil export & trading activities. The company now stands diversified with higher
weighted dollar denominated earnings, an optimised and restructured balance sheet with
lower cost of capital and longer tenors. With the upturn in the global oil prices to levels above
$50 per barrel, we now look forward to the successes of 2016, having ridden out the storm?.
The institutions involved in the financing are; Access Bank, Diamond Bank, Ecobank, FCMB,
Fidelity Bank, Keystone Bank, Stanbic IBTC Bank, UBA Bank, Union Bank and Zenith Bank.
The transaction further signifies the solid commitment from Nigerian banking institutions to
support sustained growth and development of the Nigerian oil and gas sector in these trying
times. Oando PLC will continue to exercise strong financial discipline in meeting obligations
and our debt covenants.
For further information, please contact:
Head, Investor Relations
2, Ajose Adeogun Street,
Tel: +234 (1) 2601290-9,Ext 6396
7 June 2016
Sponsor: Sasfin Capital (a division of Sasfin Bank Limited)
Date: 07/06/2016 09:50:00 Supplied by www.sharenet.co.za
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