Heirs Energies and Afreximbank reach a $750 million finance agreement to increase Nigeria’s production of gas and oil
Heirs Energies Ltd. and African Export-Import Bank (Afreximbank) announced on Monday that they had inked a $750 million financing deal to bolster the energy company’s capital structure and finance its field development program in Nigeria.
Afreximbank structured the dual-tranche senior secured reserve-based lending facility, which will supply funding to support Heirs Energies’ expansion plan as it looks to increase oil and gas output. For the transaction, Afreximbank served as the required lead arranger, facility agent, and security agent.
Afreximbank President George Elombi stated, “This partnership is a testament to Afreximbank’s commitment to value creation and empowering African entrepreneurs,” during the signing event in Abuja. He went on to say that the bank intended to invest a substantial amount of money in the projected African Energy Bank.
According to Tony Elumelu, chairman of Heirs Energies, the deal demonstrated how important African wealth is to funding the continent’s future. “It reflects the successful journey Heirs Energies has taken – from turnaround to growth,” he stated.
The agreement expands upon a 2021 arrangement in which Afreximbank and other lenders supported Heirs Energies, later known as Heirs Oil & Gas, to purchase a 45% share in OML 17 for $1.1 billion. The company is now a major provider of gas to Nigeria’s power industry and has increased its crude output to around 50,000 barrels per day.
