Afreximbank Boosts Heirs Energies with $750-million facility

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• Advancing Nigeria’s domestic energy capacity

African Export-Import Bank (Afreximbank) and Heirs Energies Limited have announced a landmark US$750-million financing partnership designed to optimise Heirs Energy’s capital structure and unlock critical liquidity to support its working capital requirement as it pursues its ambitious field development programme. The investment is expected to significantly transform Nigeria’s domestic energy capacity as demand rises. Signed by Dr. George Elombi, President and Chairman of the Board of Directors of Afreximbank, and Mr. Tony O. Elumelu CFR, Chairman of Heirs Energies Limited, the dual-tranche senior secured reserve-based lending facility, concluded during a ceremony in Abuja, will support Heirs Energies’ accelerated growth strategy as the company enters a new phase of expansion seeking to increase, and sustain, its oil and gas production.

Afreximbank was appointed the Mandated Lead Arranger, Facility Agent, and Security Agent under the financing which is seen as an important milestone in strategic collaboration between Afreximbank and Heirs Energies.

In comments following the signing, Dr. Elombi highlighted the partnership as a testament to Afreximbank’s commitment to value creation and the empowerment of African entrepreneurs.

“Without investments, such as the one being provided to Heirs Energies, many fossil fuel dependent African economies would face dire economic challenges,” said Dr. Elombi. “Our aim, among others, is to empower the African entrepreneur. Our core strength is in the value of the partnerships we continue to forge.”

He lauded Mr. Elumelu’s steadfast support for Afreximbank’s activities, adding that such partnerships have been instrumental in helping position Afreximbank as a significant cog in unlocking Africa’s economic transformation and other goals.

The President reaffirmed Afreximbank’s determination to see the African Energy Bank project to fruition, saying, “we should get to higher strides and get the Energy Bank so we can move most of the energy portfolio there. We will put tremendous capital in it to be as bold and as innovative as Afreximbank”.

Dr. Elombi added that Afreximbank was willing to work with Heirs Holdings and its affiliated companies to expand to other West African countries such as Ghana and Côte d’Ivoire, and to other parts of the continent. “Our aim is to spread and support the domination of the African brand across Africa.”