AFC fuels expansion at New Age with new investment
LAGOS, Nigeria, Africa Finance Corporation (‘AFC’) is acting as lead arranger for an up to US$425 million senior mezzanine facility for New Age (African Global Energy) Limited (‘New Age’), a privately held oil and gas exploration, development, and production company with assets primarily across Africa, to enable the company to further develop its existing assets and expand operations. AFC is investing US$75 million in the deal.
AFC and the lender consortium are disbursing an initial US$350 million of the facility immediately, with an accordion feature to allow for an additional US$75 million of capital to follow. The investment will allow New Age to refinance an existing loan facility and develop projects in Nigeria, the Republic of Congo, and to expand operations in several other African countries. The lenders include amongst other EIG Global Energy Partners, and a Middle East based Sovereign Wealth Fund.
This loan will enable New Age to ramp up production in its high quality portfolio across the continent. New Age has made significant steps in achieving its growth objectives. As an example, New Age as the technical operator of the Aje field in OML 113 in Nigeria has attained first oil production targeting 11,000 barrels per day, making Lagos state officially an oil producing state. The Aje field is also targeted to be a significant gas supplier to Lagos power and industrial projects. In addition, New Age has achieved first production within the last two years at the Litchendjili and Nene marine fields in offshore Congo-Brazzaville.
Andrew Alli, President & CEO of AFC commenting on the announcement said:
“While the recent volatility in the oil industry has been challenging, AFC believes the current market provides opportunities for long-term investors across the value chain.
New Age has enjoyed considerable operational success in recent years across its Pan African portfolio and we would like to help them build on these foundations for the future. The company’s well capitalised existing shareholder base, now complemented by a new financing from top tier financial institutions with a long history of investing in global oil and gas projects, is a testament to the confidence in the business model and provides comfort on New Age’s ability to successfully execute future large scale capital projects. The lenders in the consortium are also working with New Age to further enhance the company’s existing robust corporate governance.
AFC is pleased and excited to be able to help the company grow and thrive, especially in this difficult environment. The significance of this investment, is in the linkages between the company’s gas production and the power sector in Nigeria in particular, and, the replicability for the development of an energy infrastructure network across continental Africa”.