United Capital PLC raises US$250 Million Crude Prepayment Facility on behalf of Orion Group from a syndicate of three Pan African Banks

7th January 2016

In one of the largest transactions structured by an African investment banking institution in 2015,United Capital closed the year with a landmark deal in which it raised fresh capital of USD250m for Orion Group.
Lagos, Nigeria, 22 December, 2015 – United Capital Plc has successfully achieved financial close on the US$250 million Tranche One crude prepayment facility for Orion Oil from a syndicate of three Pan African banks. The second Tranche of US$330 million will achieve financial close in the second Quarter of 2016. In addition to United Capital’s role as Structuring Bank, it will also act as Facility Agent and Security Trustee to lenders on the facility.
United Capital syndicated the facility through three Pan African institutions: United Bank for Africa and its subsidiaries across Africa (US$100 million), Africa Export Import Bank, Egypt (US$100 million) and Banque Gabonaise et Française Internationale, Gabon (US$50 million). Despite the recent fall in oil prices, the US$250 million crude prepayment facility is the largest reported transaction structured by an African investment bank in 2015 involving the raising of fresh capital within the African market.
“As a Group focused on providing strategic investment banking and financing solutions to our clients across the continent, our roles as Debt Advisor, Structuring Bank, Facility Agent and Security Trustee is a true testament to our ability to provide multiple services within our Group. We are very happy to support the Orion Group on this transaction and look forward to continuing our relationship through other deals of this magnitude on the continent,” stated Oluwatoyin Sanni, Group CEO, United Capital Plc.
As the Structuring Bank, United Capital is responsible for the overall transaction coordination, structuring and syndication for Tranche One (US$250mn) and Tranche Two (US$330mn) of Orion’s prepayment facility to SNPC. The facility will run for a period of four years with a repayment period of three years.
“The expert capabilities of our Project Finance Team in structuring a transaction that attracted funding from notable Pan-African banks was critical in achieving financial close” stated Wale Shonibare, Managing Director of United Capital’s Investment Banking division.
Kolapo Joseph, Director, Project Finance at United Capital leads the team as they prepare for the Second Tranche, which will take place in early 2016. ###
For Media Inquiries: Toyin Awesu Head, Marketing & Corporate Communications United Capital Plc p. +234-1-280 8415 Ext: 19415 e. toyin.awesu@unitedcapitalplcgroup.com
About United Capital Plc United Capital Plc. is a financial and investment services group providing bespoke value-added service to its clients. United Capital is well positioned to play a strategic role in helping African governments and citizens (both individual and corporate) achieve their strategic objectives through a robust suite of financial and investment service offerings by its Group companies: Investment Banking, Asset Management, Trusteeship, and Securities. The group is regulated by the Securities and Exchange Commission (SEC) in Nigeria.
For more information about United Capital Plc. visit: www.unitedcapitalplcgroup.com
About Orion Group The Orion Group was established in 2004 and is an investment and international oil trading company, which conducts most of its operations on the African continent. The Group’s principal activity today is the physical trading of crude oil and refined products through direct purchase and export around the world. Orion also supplies several countries along the African coast and Central Africa with refined products.
With gross revenues of over US$1.1 billion, Orion Oil Limited holds c. 90% market share in the Democratic Republic of Congo’s downstream oil and gas sector making it one of the largest oil and gas companies in DRC.
For more information about Orion Group, visit: www.orion-oil.com