Seplat Petroleum Development Company Plc has announced that it successfully raised $260m from a consortium of seven banks through its Incorporated Joint Venture, the ANOH Gas Processing Company.
The energy company, in statement issued by the Company Secretary/General Counsel, Mrs. Edith Onwuchekwa, on Monday said the fund would be used to finance the completion of the 300MMscfd capacity ANOH plant, located on OML 53 in Imo State.
It added that the ANOH Gas Processing is an IJV owned equally between Seplat and the Nigerian Gas Company, a wholly-owned subsidiary of Nigerian National Petroleum Corporation.
It explained that Seplat and NGC had previously provided a combined $420m in equity funding and the project is now fully funded.
The seven banks from which the debt equity was raised are Stanbic IBTC Bank Plc (advisor), United Bank for Africa Plc, Zenith Bank Plc, FirstRand Bank Limited (London Branch) / RMB Nigeria Limited, The Mauritius Commercial Bank Limited, Union Bank of Nigeria Plc and FCMB Capital Markets Limited.
It allows for an additional US$60m accordion at the time of completion to fund an equity rebalancing payment at that time, if considered appropriate. Funding commitments of more than US$450m were received by the company, which is a significant oversubscription and a strong sign of confidence in the project.
Following a cost optimisation programme, Seplat said the fundung required for the AGPC construction cost is expected to not exceed $650m, including financing costs and taxes, an amount that is significantly lower than the original projected cost of $700m.
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According to Seplat, the project will help Nigeria to accelerate its transition away from small-scale diesel generators to cleaner, less expensive fuels such as natural gas for power generation.
The Managing Director of ANOH Gas Processing Company, Okechukwu Mba, said, “Successfully closing the $260 million debt facility means that the ANOH project is now fully funded. Once operational, AGPC will be a significant supplier of gas to Nigeria’s power sector, supporting local employment and the cleaner generation of power for Nigerian homes and businesses.
“We conservatively estimate that the gas from AGPC will be enough to generate electricity for more than five million people.”
The Chief Executive Officer of Seplat, Roger Brown, said, “Completing the funding of ANOH is an important milestone for AGPC. The ANOH development is one of the government’s Seven Critical Gas Development Projects and our involvement provides a clear path towards strengthening Seplat’s position as Nigeria’s leading indigenous diversified energy producer.
“It will help us drive, alongside our government partners, Nigeria’s transition to cleaner, less expensive power generation. We are extremely proud to partner with the Nigerian Gas Company in this strategically important project, which will create jobs and prosperity in the Nigerian economy.”
