The ANOH Gas Processing Company (AGPC) has successfully raised $260m in debt to fund the completion of its 300MMscfd capacity ANOH plant, located on OML 53 in Imo State, a statement by the company said yesterday.
AGPC is an incorporated joint venture (IJV), jointly owned by Seplat and the Nigerian Gas Company (NGC), a subsidiary of Nigerian National Petroleum Corporation (NNPC).
Seplat Petroleum Development Company Plc, a leading Nigerian independent energy company, and NGC had previously provided $420m in equity funding.
With the fresh $260m, it said, the project is now fully funded.
The fresh financing provided by a consortium of seven banks: Stanbic IBTC Bank Plc (advisor), United Bank for Africa Plc, Zenith Bank Plc, FirstRand Bank Limited (London Branch) / RMB Nigeria Ltd, The Mauritius Commercial Bank Ltd, Union Bank of Nigeria Plc and FCMB Capital Markets Ltd was signed yesterday by AGPC.
“The transaction allows for an additional $60m at the time of completion to fund an equity rebalancing payment, if considered appropriate,” the company stated.
According to it, funding commitments of more than $450m were received by the company, which is a significant oversubscription and a strong sign of confidence in the project.
Commenting on the transaction, the Chairman of AGPC, Mr. Yusuf Usman, said: “This financing agreement; for the development of the ANOH Gas Processing Plant will significantly contribute to the realization of the federal government’s initiatives towards increasing natural gas utilization in the domestic market.”
Also speaking on the financing arrangement, the company’s Managing Director, Mr. Okechukwu Mba, said:
“Successfully closing the $260m 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 millions of Nigerian homes and businesses.”