The Africa Finance Corporation (AFC) yesterday disclosed that it was the lead arranger of a $1.305 billion pre-payment facility for Glencore Energy UK. The facility would be used by Glencore to provide financing of up to $1.450 billion to SociÉtÉ des Hydrocarbures du Tchad ("SHT"), the National Oil Company of Chad.
The pre-payment facility would in turn, be used by SHT to acquire Chevron Global Energy Incorporated's 25 per cent participating interest in the Doba consortium, which owns and operates oil producing assets in Chad.
Other financial institutions involved in the pre-payment facility were Credit Agricole Corporate and Investment Banking; Deutsche Bank, FBN Bank (UK) Limited, Natixis, SociÉtÉ Generale Bank and Citibank N.A. as the account bank.nAFC's contribution to the financing was $100 million.
The Doba Consortium owns and operates the Doba Consortium petroleum assets in Chad, together with the pipeline companies responsible for transporting crude oil to Cameroon for export. The Consortium comprises ExxonMobil Corporation (ExxonMobil), Chevron Global Energy Inc. (Chevron), and Petroliam Nasional Berhad (Petronas).
The field is operated by ExxonMobil. The Natural Resources sector is a core investment priority for AFC. The Corporation is playing an active role in supporting the acquisition of assets by indigenous entities.
This forms part of the Corporation's wider objective to support the enhancement of local content, and local ownership, in the natural resources sector across the continent. This investment marks the first project for the AFC in Chad, which joined the Corporation as a member country in October 2012.
Commenting on the investment the President and Chief Executive Officer, AFC, Andrew Alli said: "We are particularly pleased to be able to finance our first project in Chad, a member country of the AFC since 2012.
"This investment represents a continuation of our strategy to support the indigenisation of Africa's oil and gas sector through the provision of finance for the acquisition, or development of assets by local entities.
"By providing finance for Glencore's pre-payment facility, AFC is ultimately supporting the industrial and economic development of the Republic of Chad."