The United Bank for Africa, UBA, has said that it has signed a $1.2 billion oil financing agreement with the Nigerian National Petroleum Corporation, NNPC joint venture with Chevron Nigeria Limited, CNL, to fund the development of 36 new oil wells.
The deal is expected to help significantly expand Nigeria’s oil production capacity, which currently stands at an average of 1.87 million barrels per day, UBA Group Chairman, Tony Elumelu, said this at the maiden Senior Leadership Forum to review the bank’s strategic importance and growth potential of its pan-African business.
Mr. Elumelu said the oil financing agreement with Nigeria was part of plans to expand its African investment network as a strong pan-African brand.
The bank plans to expand to 25 African countries.
As part of the plan, Mr. Elumelu said the bank would provide another $315 million facility to the Ghana for road projects, while a $250 million crude pre-payment facility would be extended to the Democratic Republic of Congo-based Orion Oil.
The bank said Orion Oil facility involving fresh capital within the African market represents the largest reported transaction structured by an African investment bank in 2015.
Mr. Elumelu said another Euro 234 million oil and gas financing deal with Société Africaine de Raffinage (SAR) of Senegal underscored the bank’s capacity to fund big ticket transactions across Africa.
He said another $180 million funding is to be extended to Delta Energy Zambia for the procurement and supply of petroleum products to marketing companies in the country, while $90million is to be provided by UBA Senegal – African capital for the University of Dakar hostel construction project.
The Forum attended by 90 participants, including the Board members, Chairmen and all CEOs of UBA subsidiaries across Africa and the United Kingdom, was timed to coincide with the bank’s Annual General Meeting and Group Board Meeting.
“We are one bank, the United Bank for Africa”, Mr. Elumelu said. “Bringing together our senior leadership talent from across the continent and the distinguished leaders who chair our subsidiary businesses is a powerful demonstration of our commitment to forge one bank for Africa.
“As long-term investors and pioneers in pan-African commercial and investment banking, we are deeply committed to the markets in which we operate and to harnessing the potential represented by the wider African economy.
“Our intention is to be the leader in African financial services, and our recent transactions show this. We see clearly the potential of Africa” he added.