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Tag: Chappal Energies

  • Chappal Energies completes $340m, $90m lending

    Chappal Energies completes $340m, $90m lending

    Chappal Energies, through its subsidiary, Chappal Investments Limited, has successfully completed a $340 million Senior Secured Reserve Based Lending (RBL) facility provided by a syndicate of leading international and African financial institutions.

    The completion of the $340 million RBL facility is alongside a $90 million Junior Secured RBL facility provided by a leading global commodities company. The transactions mark a significant milestone in the Company’s financial and strategic development.

    The successful close, according to the company, follows a rigorous technical, legal, and commercial due diligence process and reflects lender confidence in the quality of Chappal’s asset base, governance framework, and disciplined operating model.

    The Management of Chappal, in a statement on Thursday, said, “Achieving this outcome in a challenging global financing environment underscores the resilience of the Company’s business and its credibility with international capital providers.”

    The statement, which was made available to The Nation, said proceeds from the facilities will be used primarily to refinance acquisition bridge financing incurred in connection with the Equinor Nigeria transaction.

    It added that the facilities will also provide ongoing funding to support field development, production optimisation, and broader operational requirements across Chappal’s asset portfolio.

    Read Also: MCB provides $120M financing for Chappal Energies’ $360M acquisition of ENEC assets

    “The facilities establish a stable, long term financing structure aligned with the Company’s reserve base and cash flow profile,” it stated, noting that they strengthen the Company’s financial platform and growth outlook.

    Chappal Energies said it remains focused on executing its strategy to become a pan African energy company operating to international standards.

    “The company continues to engage constructively with regulators, partners, and stakeholders, and remains committed to responsible operations, strong governance, and sustainable value creation as we look to our next acquisition opportunity

    “This transaction represents a strong endorsement of Chappal Energies’ strategy, assets, and management team, and positions the Company well for its next phase of growth,” it stated.

  • MCB provides $120M financing for Chappal Energies’ $360M acquisition of ENEC assets

    MCB provides $120M financing for Chappal Energies’ $360M acquisition of ENEC assets

    The Mauritius Commercial Bank (MCB) has announced its participation in a landmark transaction, contributing USD 120 million as part of a USD 360 million senior secured bridge facility to support Chappal Energies in acquiring Equinor’s offshore infrastructure in Nigeria.

    Chappal Energies, a leading indigenous Nigerian oil and gas company focused on brownfield upstream opportunities across Africa, has acquired operational rights and a 53.85% ownership stake in the OML 128 and OML 129 fields, alongside a unitized 20.21% interest in Nigeria’s massive offshore Agbami field, operated by Chevron. 

    As one of Nigeria’s largest deep-water oil fields, Agbami has produced over one billion barrels of oil since its inception in 2008. 

    This acquisition marks a significant milestone for Chappal, cementing its position as a key player in the Nigerian oil and gas sector.

    With international oil companies gradually shifting their focus toward offshore and integrated gas operations in Nigeria, opportunities are emerging for indigenous companies like Chappal to take center stage. 

    The acquisition underscores Chappal’s potential to contribute meaningfully to Nigeria’s vision of universal energy access by 2030.

    The transaction highlights MCB’s continued leadership in Africa’s energy financing space and its strategic role within the Mauritius International Financial Centre (MIFC). 

    As one of Africa’s few investment-grade banks, MCB leverages its deep expertise in energy and commodities financing to support transformative projects on the continent.

    MCB’s involvement in this transaction reflects its decade-long commitment to Nigeria’s oil and gas sector. 

    The bank’s specialized team, comprising senior bankers with extensive experience in the sector, successfully executed the deal within a tight timeframe. 

    Serving as a senior lender, security agent, and account bank, MCB brought significant value to the transaction through its expertise, operational relationships, and in-depth knowledge of the oil and gas value chain.

    The acquisition provides Chappal Energies with a robust platform for growth, positioning the company for further expansion across Africa.

    Thierry Hebraud, CEO of MCB Ltd, remarked: “We are proud to support Chappal Energies in this strategic acquisition, which marks a transformational moment for the company. This transaction aligns perfectly with our mission to meet the energy needs of African economies while enabling their energy transitions. 

    “As an African bank, MCB is committed to empowering homegrown champions with the technical and financial capacity to lead their industries’ futures. This deal showcases the strength of our capabilities and our growing role in driving high-impact transactions across the continent.”

    Ufoma Immanuel, Managing Director of Chappal Energies, expressed gratitude for MCB’s partnership: “MCB remains a vital partner for Chappal, seamlessly integrating into our strategic initiatives from concept to execution. Their expertise across the value chain and unwavering commitment to our vision have been instrumental in this acquisition. We look forward to strengthening this relationship in the years ahead.”

     Executive Director of Structured Debt and Power & Infrastructure at MCB Ltd,

    Youri Harel added: “This pivotal deal underscores MCB’s dedication to fostering indigenous leaders capable of reshaping Africa’s energy landscape. Our extensive involvement in this transaction reflects years of developing internal expertise and an expanding role in executing complex, high-value projects across the continent.”

    The deal team included Avanish Gukhool, Associate Director, alongside Jean Laurent Pyndiah, Keshav Sathyasheel Tohooloo, Ricky Kaniah, Ashna Bhudu from Credit Analysis and Structuring, and Sapna Dwarka, Legal Manager.

    The transaction reaffirms MCB’s commitment to advancing Africa’s energy future by enabling transformative projects and supporting the continent’s emerging leaders.