By Goddy Egene, 08.05.2010

Oando PLC, Nigeria’s leading indigenous energy group has concluded the  drawn down on a N60 billion facility provided by 13 leading financial institutions in Nigeria to aid the company’s commitment to sustain profitability and growth.

 

A statement from the company yesterday said that the facility was  coordinated by the mandated lead arrangers-First Bank of Bank Plc, Guaranty Trust Bank Plc  and Stanbic IBTC Bank Plc and it is a five year Medium Term Note. Other banks involved in the transactions are: Access Bank, Sterling Bank,  Bank PHB Plc, Citibank, Ecobank Nigeria Plc,  First City Monument Bank Plc, Oceanic Bank, International Plc, United Bank for Africa Plc,  Unity Bank Plc and Zenith Bank Plc,

 

Oando said its investments across the energy value chain have ensured continued asset creation irrespective of the pressures of the market space.  Some of the company’s key investments include 600 retail stations, 100 km of gas pipeline in Lagos, 124km gas pipeline in development in the South East, five swamp drilling rigs, and interest in over 11 oil & gas exploration and production fields including a producing deepwater asset.

 

Commenting on the transaction, the Group Chief Executive, Oando Plc, Mr. Wale Tinubu, said: “At Oando, our strong fundamentals and discipline in meeting obligations, has consistently been recognised by bankers locally and internationally. This funding further reinforces the confidence of the banks in the robustness of our diversified earnings platform. In challenging situations, only companies with sound investment cases and definitive growth profiles will attract such overwhelming support from discerning financial institutions.”
Speaking in the same vein, Oando’s Group Chief Finance Officer, Mr. Femi Adeyemo, said: “We are encouraged by the confidence reposed in us by banks, shareholders and the investing public in general.

 

Our recently oversubscribed N21 billion Rights Issue, the continued backing of banks- locally and internationally, and the unwavering support of our investors have sustained our track record of an average of 50 per cent year-on-year increase in profitability over the last five years. This Medium Term Note will provide the much needed liquidity for growth in our subsidiaries”

 

Oando is one of the non-banking institutions that have raised in excess of $500 million in medium to long term facilities in the local and international debt markets in recent times to fund operations and growth. Oando recently posted a profit after tax of N3.1 billion the first quarter of 2010, representing a 73 per cent  over the corresponding period of 2009.

 

Source: Thisday