AFC lead arranger for oil acquisition in Chad

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AFC lead arranger for oil acquisition in Chad

The Africa Finance Corporation (AFC) is the mandated lead arranger of a US$1.305 billion pre-payment facility for Glencore Energy UK.

The facility will be used by Glencore to provide financing of up to US$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% participating interest in the Doba consortium, which owns and operates oil producing assets in Chad.

AFC was one of the six mandated lead arrangers of the pre-payment facility, the others being Credit Agricole Corporate and Investment Banking, Deutsche Bank, FBN Bank (UK) Ltd, Natixis, and Société Generale Bank, with Citibank N.A. as the Account Bank. AFC’s contribution to the financing was US$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, Chevron Global Energy Inc. and Petroliam Nasional Berhad. 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.

Andrew Alli, President & Chief Executive Officer, AFC stated:

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 indigenization 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

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