FBN Bank (United Kingdom) Limited, Ecobank Nigeria Limited, Union Bank of Nigeria Plc and Union Bank UK Plc have signed a $170m acquisition finance facility with Accugas Limited, a subsidiary of Seven Energy International Limited.

The Managing Director and Chief Executive Officer, FBN Capital Limited, Mr. Kayode Akinkugbe, said at the signing ceremony in Lagos on Wednesday that his firm acted as the lead arranger for the deal.

He said, “FBN Capital is very proud of the instrumental role it played in assisting Seven Energy to structure and arrange the financing for the acquisition.

“FBN Holdings Group feels a strong sense of responsibility towards fostering growth in the power, gas pipeline and oil and gas sectors and we will continue to deploy our extensive debt arranging experience and structuring expertise in executing robust transactions in record time.”

The Chief Executive Officer, Seven Energy, Mr.  Phillip Ihenacho, said the facility part-financed the acquisition of the entire issued share capital of East Horizon Gas Company Limited, recently acquired by the company to expand its gas infrastructure assets in the South East Niger Delta.

The EHGC was established by Oando Plc with the intention of constructing and operating an 18-inch, 128km gas pipeline connecting the Obigbo-Alscon pipeline at Ukanafun.

It is meant to supply gas to an industrial off-taker located in Mfamosing, Cross River State, and meet the needs of other industrial users in the Calabar region.

In consolidating the gas infrastructure assets of Accugas and EHGC, Ihenacho said Accugas aimed to strengthen its distribution platform, increase efficiency and broaden its geographical reach, furthering Seven Energy’s intention to create a leading gas distribution business in Nigeria.

He said, “This is a landmark transaction for us. We are delighted to expand our midstream operations in Nigeria with this investment. It is a perfect fit to our strategy of investing in core midstream infrastructure assets in the South East region of the country. I will also like to thank the entire team for their achievements in bringing this important financing transaction to a close.”

The Chief Financial Officer, Seven Energy, Mr. Bruce Burrows, commended the lenders for their support, and dedication to ensure that the completion of the EHGC acquisition process was in line with the sponsors’ timetable.

The Director and Head Debt Solutions, FBN Capital Limited, Patrick Mgbenwelu, said, “We appreciate the responsibility and trust Seven Energy has placed on FBN Capital to advise and arrange the financing for the acquisition of the EHGC. FBN Capital remains committed to further strengthening this relationship and supporting Seven Energy in realising its various financing goals and objectives.”

Source: Punch (by Dayo Oketola)