United Capital Plc has made one of the largest transactions structured by an African bank in 2015. Last December, the investment bank achieved a US$250 million Tranche One Crude pre-payment facility for the Democratic Republic of Congo-based Orion Oil. The facility will run for a period of four years with a repayment period of three years. A team is being led by the Project Finance Director at United Capital, Kolapo Joseph, in preparation for a second Tranche of US$330 million which will reach a financial close by the second Quarter of 2016.
United Capital was able to achieve the Tranche One facility through three Pan-African banking institutions – United Bank for Africa and its subsidiaries across Africa (US$100 million), African Export Import Bank, Egypt (US$100 million) and Banque Gabonaise et Française Internationale, Gabon (US$50 million). Roles of the United Capital Plc in this regard include a Structuring Bank, a Facility Agent and a Security Trustee to lenders on the facility.
Despite the recent fall in oil prices, the US$250 million crude, pre-payment facility is the largest reported transaction structured by an African investment bank in 2015 involving the raising of fresh capital within the African market.
Commenting on the Tranche One financial close, Women4Africa 2015 Awardee and Group CEO, United Capital Plc, Oluwatoyin Sanni, said the investment bank is looking forward to sealing similar deals in the future. “As a group focused on providing strategic investment banking and financing solutions to our clients across the continent, our roles as Debt Advisor, Structuring Bank, Facility Agent and Security Trustee is a true testament to our ability to provide multiple services within our Group. We are very happy to support the Orion Group on this transaction and look forward to continuing our relationship through other deals of this magnitude on the continent”, she said.
“The expert capabilities of our Project Finance Team in structuring a transaction that attracted funding from notable Pan-African banks was critical in achieving financial close”, stated Wale Shonibare, Managing Director of United Capital’s Investment Banking division.
