A $250 million financing facility to support the acquisition of about 40 per cent equity in ND Western Limited from Petrolin Trading Limited has been secured by Aradel Energy Limited, a wholly owned subsidiary of Aradel Holdings Plc.
The funding package was facility for the energy firm by Standard Bank, which comprises Stanbic IBTC Capital Limited, Stanbic IBTC Bank Limited, and the Standard Bank of South Africa Limited.
The facility, Business Post gathered, was structured to support Aradel Energy’s strategic growth agenda, the refinancing of existing loan facilities, and the funding of increased production from the company’s existing asset base.
Aradel Energy is the operator of the Ogbele and Omerelu onshore marginal fields, as well as OPL 227 in shallow water terrain.
Prior to the transaction, Aradel Energy held a 41.67 per cent equity interest in ND Western, and following the completion of the acquisition, its shareholding in ND Western has increased to 81.67 per cent.
ND Western holds a 45 per cent participating interest in OML 34 and a 50 per cent equity interest in Renaissance Africa Energy Company Limited, the operator of the Renaissance Joint Venture and a 30 per cent owner of one of Nigeria’s largest and most strategic energy portfolios.
As a result of the transaction, Aradel Energy’s indirect equity interest in Renaissance has increased to 53.3 per cent, significantly strengthening the company’s upstream position and long-term value creation potential.
Standard Bank acted as Global Coordinator and Bookrunner, leading the structuring, execution, and funding of the facility, affirming its deep sectoral expertise and reinforces its position as a leading financier in Africa’s energy industry.
This transaction reinforces Standard Bank Group’s commitment to providing strategic capital to clients as they execute on their transformative growth objectives.
By delivering tailored financing solutions that enable sustainable value creation, the Bank remains a trusted partner to leading corporations across Africa’s evolving energy landscape.
“As Aradel Energy consolidates its position as one of Nigeria’s leading oil and gas companies, Stanbic IBTC Bank is proud to serve as a trusted long-term partner supporting the company’s growth ambitions,” the Executive Director for Corporate and Transaction Banking at Stanbic IBTC Bank, Mr Eric Fajemisin, stated.
Also commenting, the Regional Head of Energy and Infrastructure Finance for West Africa at Standard Bank, Mr Cody Aduloju, said, “The transaction illustrates Standard Bank’s ability to deliver large-scale, tailored funding solutions and further demonstrates our support to the fast-growing indigenous companies of Nigeria’s oil and gas sector.”
The chief executive of Aradel Holdings, Mr Adegbite Falade, said, “The acquisition bolsters Aradel Energy’s competitive positioning across Nigeria’s oil and gas value chain and supports our commitment to strategic growth, asset optimisation, and enduring value creation. We are pleased to have partnered with Standard Bank, who supported us and delivered a fully funded solution under very tight timelines.”