FBN Capital, lenders, close Accugas syndicated $445m medium term loan

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FBN Capital Limited (“FBN Capital”) has announced it has facilitated the closing of an up to $445 million Syndicated Medium Term Facility with Accugas Limited (“Accugas”).
Accugas, a wholly owned subsidiary of Seven Energy International Ltd (“Seven Energy”), is the gas processing, marketing and distribution arm of the Seven Energy Group.
The signed Syndicated Medium Term Facility of up to $445 million is being utilized towards the refinancing of Accugas’ existing debt portfolio, its working capital requirements and also to fund medium term capital expenditure.
The facilities, which was structured to optimize the Borrower’s capital structure, was closed with a consortium of local and international banks, with FBN Capital acting as the Structuring Bank, Modelling Bank, Initial Technical Bank and Global Facility Coordinator.
Accugas focuses on sales and marketing, processing and distribution of gas to the domestic Nigerian market.
Through the development of gas infrastructure, Accugas serves to assist its upstream partners to monetize their gas resources.
Accugas owns the Uquo gas processing facility, which processes gas from the Uquo and Stubb Creek Fields, and a network of pipelines linking the processing facility to the Ibom Power power station, the Calabar NIPP power station, the Unicem cement factory, the Notore fertilizer plant and the Alaoji NIPP power station.
Additionally, the acquisition of East Horizon Gas Pipeline adds the 128km pipeline running from the Ukanafun Junction to Mfamosing, just outside Calabar, to the Group’s infrastructure assets.
Kayode Akinkugbe, Managing Director of FBN Capital Limited said that “FBN Capital is very proud of the instrumental role it played in assisting Accugas to structure and arrange this financing for the Borrower.
“The successful signing of this financing shows that lenders see the Accugas business as a catalyst for economic development in Nigeria,” Akinkugbe said.
Speaking on the transaction, Patrick Mgbenwelu, Director and Head Debt Solutions, …Read More

Source:: New Mail