Oando Plc has entered right into a strategic partnership with AfrexInsure, the specialty insurance coverage subsidiary of African Export-Import Financial institution (Afreximbank), the financial institution disclosed in an announcement issued in Cairo on Monday.
The deal permits AfrexInsure to offer crucial threat administration options to Oando by guaranteeing that the lender’s funding within the vitality firm’s Nigerian operations is sufficiently protected.
Afreximbank acknowledged that the synergy will enhance Oando’s resilience, promote sustainable vitality improvement and strengthen Afreximbank’s dedication to financial development and regional stability within the commerce ecosystem by means of mitigation of operational and geopolitical dangers.
“This strategic collaboration between Oando and AfrexInsure will assist promote native content material in Africa’s oil and fuel sector,” mentioned Jonas Mushosho, CEO and principal officer of AfrexInsure.
“The collaboration, which additionally underscores a shared dedication aimed toward fostering financial empowerment and contributing to the sustainable improvement of Africa’s pure sources, will even strengthen the African insurance coverage sector by retaining premium flows throughout the continent and fostering Africa’s monetary sustainability,” he added.
Afreximbank’s enterprise relationship with Oando has been marked by a few key financing initiatives.
Final August, the lender facilitated a $650 million financing of Oando’s full acquisition of the Nigerian Agip Oil Firm from Eni. The transaction is anticipated to assist scale the corporate’s manufacturing capability fivefold to 100,000 barrels of oil equal per day.
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In June 2024, Oando by means of its subsidiary Oando Buying and selling contributed $550 million to a $925 million accordion facility organized by Afreximbank, enabling it to take part in a $3.3 billion structured crude oil-backed finance facility referred to as “Challenge Gazelle,” which was sponsored by the Nigerian Nationwide Petroleum Firm Restricted.
An accordion permits a borrower to extend the utmost restrict permitted on a mortgage facility or add a time period mortgage to an present mortgage settlement.
“We’ve a longstanding relationship with Afreximbank the place we’ve seen the Financial institution help our imaginative and prescient for vitality in Africa, not solely with important financing but additionally with invaluable steering and advisory help,” Wale Tinubu, Oando’s chief govt, mentioned.
READ ALSO: Oando chosen as most well-liked bidder for lease of Guaracara Refinery in Trinidad & Tobago
“Following our current acquisition, a tailor-made threat identification and mitigation method is paramount. We’re assured that our collaboration with AfrexInsure will present the mandatory oversight to make sure each the adequacy and comprehensiveness of our threat administration technique,” he added.
Oando is listed in Lagos in addition to in Johannesburg. The corporate reported an 8.6 per cent soar in internet revenue to N65.5 billion in 2024.
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