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Afreximbank, UBA Announce Initial Disbursement Of $2.25bn Under Syndicated $3.3bn Crude Oil Prepayment Facility Sponsored By NNPCL

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African Export-Import Bank (Afreximbank) has successfully arranged a syndicated US$3.3 billion crude oil prepayment facility sponsored by the Nigerian National Petroleum Company Limited (NNPCL). An initial disbursement of US$2.25 million has been made. A second tranche of US$1.05 million is expected to be disbursed subsequently.

United Bank for Africa Plc (UBA) acted as the Local Arranger and Onshore Account Bank for the transaction, which is expected to ease the foreign exchange illiquidity and stabilise the Nigerian currency market. The transaction is seen as a significant further step in unleashing Nigeria’s economic potential.

This landmark financing is Nigeria’s largest crude oil prepayment facility and one of the largest syndicated loans raised in Africa in 2023. The 5-year facility carries a margin of 6.0% per annum above the 3-month secured overnight financing rate (SOFR). The transaction structure has an embedded price balance mechanism where 90% of all excess cash from the sale of the committed barrels (after debt service) will be released to the borrower, while the balance of 10% will be used to prepay the facility, effectively shortening the final maturity of the facility and freeing cashflow from future pledged cargoes for use by Nigeria.

The initial participating lenders are Afreximbank, Africa’s multilateral trade finance institution, Gunvor International BV, a Geneva-based multinational energy and commodities trading company and Sahara Energy Resources Limited, an African-owned, leading international energy and infrastructure conglomerate.

Afreximbank’s extensive structuring and technical experience in arranging similar complex oil & gas financing facilities in Angola, Republic of Congo, South Sudan, Chad Egypt, Cote d’Ivoire. Ghana, etc. was brought to bear in the successful closure of the facility, notwithstanding a very challenging market environment. The Bank acted as Sole Mandated Lead Arranger, Technical and Modelling Bank, Bookrunner, Facility Agent, Offshore Account Bank, Intercreditor Agent and Collateral Agent.

Lauding the successful financial close, Afreximbank President and Chairman of the Board of Directors, Prof. Benedict Oramah, explained that “this facility further demonstrates the Bank’s commitment to supporting African economies, when such assistance is most needed. Afreximbank stands by its member countries in good and in difficult times. The disbursement of the initial US$ 2.25 billion under the facility will support Nigeria’s long-term economic stability, ease access to import financing for raw materials and essential goods, support industrialization and trade development efforts. We are pleased that despite the typical year-end pressures, our partners and investors committed the funds required in record time. We thank them for their support”.

The NNPCL Group Chief Executive Officer, Mr. Mele Kolo Kyari, commented on this landmark transaction, noting that “the proceeds of the facility have been made available to the Federal Republic of Nigeria as one of the strategies to improving macro-economic stability. The participation of global, international and regional syndication firms is a further testament to the lending market’s appetite for financing sponsored by NNPCL and signifies solid market confidence in Nigeria.”

The Group Managing Director/CEO, United Bank for Africa (UBA), Oliver Alawuba said that “UBA is delighted to participate in this transaction, which demonstrates once again UBA’s commitment to providing necessary interventions and solutions towards addressing economic issues in Nigeria and across Africa. UBA has a track record of structuring and participating in significant resource-based transactions, leveraging its global network and dollar balance sheet. Similar transactions include DRC deal, Kenyan deal, Senegal SAR Orion deal with Afreximbank.”

United Bank for Africa Plc is a leading Pan-African financial institution, offering banking services to more than twenty-seven (27) million customers, across 1,000 business offices and customer touch points in 20 African countries. With presence in New York, London, Paris, and Dubai, UBA is connecting people and businesses across Africa through retail, commercial and corporate banking, innovative cross-border payments and remittances, trade finance and ancillary banking services.

BIG STORY

US Decides: Trump Claims Victory Over Harris In Presidential Election, Says We’ve Taken US Back

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Donald Trump declared victory and promised to “heal” the country as results placed him on the brink of defeating Kamala Harris in a dramatic White House comeback.

His triumphant speech came despite Fox News being the only network to declare him the winner, with no other US outlets having made a call at that point.

As ecstatic supporters cheered and chanted “USA,” Trump took the stage at his campaign headquarters in Florida, joined by his wife Melania and several of his children.

“We are going to help our country heal,” the Republican former president said.

“It’s a political victory that our country has never seen before.”

US networks had called Pennsylvania, Georgia, and North Carolina for the 78-year-old, while Trump led Harris in several other states, although those hadn’t been officially decided yet.

A sense of gloom quickly enveloped Harris’s camp.

“You won’t hear from the vice president tonight but you will hear from her tomorrow,” Cedric Richmond, Harris’s campaign co-chair, told a watch party in Washington as supporters began to leave.

In another setback for Democrats, Trump’s Republican Party also gained control of the Senate, flipping two seats and overturning a narrow Democratic majority.

A Trump win could send shockwaves across the globe, as US allies in Europe and Asia fear a return to his nationalist policies and his praise for autocrats like Russia’s Vladimir Putin.

However, the US dollar surged, bitcoin hit a record high, and most equity markets saw gains as traders predicted a Trump victory as the results came in.

For weeks, polls had shown a razor-tight race between Harris and Trump, who would become the oldest president in history at the time of his inauguration, the first felon president, and only the second in history to serve non-consecutive terms.

Trump is also facing sentencing in a criminal case over hush money payments on November 26, while the controversy over his refusal to accept his 2020 election defeat to Joe Biden continues to loom.

But in the end, victory came surprisingly quickly.

The mood shifted sharply at Harris’s watch party at Howard University, her alma mater and a historically Black college in Washington, as the results poured in.

“I am scared,” said Charlyn Anderson. “I am anxious now. I am leaving, my legs can barely move.”

Meanwhile, the celebrations grew more intense at Trump’s Mar-a-Lago resort in Florida and at the watch party nearby.

Tech mogul Elon Musk, who has supported Trump and is poised to lead a government efficiency commission under him, posted a picture of himself with the Republican.

“Game, set and match,” Musk said on X, the social media platform he owns alongside the Tesla electric vehicle company and SpaceX.

Millions of Americans had lined up to vote throughout Election Day, with many more casting early ballots, in a race with profound consequences for both the United States and the world.

Voters were deciding whether to hand Trump a historic comeback or make Harris the first woman to hold the world’s most powerful position.

In a stark reminder of the tension — and the fear of potential violence — dozens of bomb threats were made against polling stations in Georgia and Pennsylvania.

The FBI stated that the threats appeared to originate from Russia, which the US has accused of attempting to interfere in the election. Though all the threats were hoaxes, they caused significant disruption.

Harris, 60, had hoped to become the second Black president and the first of South Asian descent.

Her entrance into the race had been dramatic, coming after Joe Biden dropped out in July, while Trump — who was impeached twice during his presidency — had endured two assassination attempts and a criminal conviction.

She focused her campaign on portraying Trump as a threat to democracy and firmly opposed his stance on abortion bans.

Trump, for his part, vowed to launch an unprecedented deportation campaign targeting millions of undocumented immigrants, speaking in a campaign steeped in dark rhetoric.

The election was closely watched worldwide, especially in war zones like Ukraine and the Middle East. Trump has suggested he would cut aid to Ukraine in its fight against Russia’s invasion.

 

Credit: AFP

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BIG STORY

BREAKING: Chief Of Army Staff Lt. General Taoreed Lagbaja Dies At 56

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Nigeria’s President, Asiwaju Bola Ahmed Tinubu, Commander-in-Chief of the Armed Forces, has announced the death of Lt. General Taoreed Abiodun Lagbaja, Chief of the Army Staff.

Lagbaja died at the age of 56.

According to a statement issued by the Special Adviser to the President, Information and Strategy, Bayo Onanuga, he passed away on Tuesday night in Lagos after a period of illness.

“Born on February 28, 1968, Lt. General Lagbaja was appointed Chief of Army Staff on June 19, 2023, by President Tinubu.

“His distinguished military career began when he enrolled in the Nigerian Defence Academy in 1987. On September 19, 1992, he was commissioned as a Second Lieutenant in the Nigerian Infantry Corps as a member of the 39th Regular Course.

“Throughout his service, Lt. General Lagbaja demonstrated exceptional leadership and commitment, serving as a platoon commander in the 93 Battalion and the 72 Special Forces Battalion.

“He played pivotal roles in numerous internal security operations, including Operation ZAKI in Benue State, Lafiya Dole in Borno, Udoka in Southeast Nigeria, and Operation Forest Sanity across Kaduna and Niger States.

“An alumnus of the prestigious U.S. Army War College, he earned a Master’s degree in Strategic Studies, demonstrating his dedication to professional growth and excellence in military leadership.

“Lt. General Lagbaja is survived by his beloved wife, Mariya, and their two children.

“President Tinubu expresses his heartfelt condolences to the family and the Nigerian Armed Forces during this difficult time. He wishes Lt. General Lagbaja eternal peace and honors his significant contributions to the nation,” the statement added.

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BIG STORY

SPORT: Madrid Eye Ademola Lookman As Vinicius’ Replacement

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Spanish giants Real Madrid have entered the race for in-form Ademola Lookman, with the UEFA Champions League holders keen to bring the Nigerian to Santiago Bernabéu as a potential replacement for “Vinicius Junior.”

Lookman has been in scintillating form since joining Atalanta from RB Leipzig in 2022 for €9.35m plus bonuses, netting 39 goals and providing 23 assists in 90 competitive appearances for the Italian side, and has attracted the interest of several top European clubs.

The 27-year-old came close to joining Paris Saint-Germain in August, with “Sports Zone” reporting that he had reached a personal agreement with the French giants.

Last season, Lookman played 45 matches, scoring 17 goals and recording 10 assists. His standout moment came in the UEFA Europa League final against Bayer Leverkusen, where he netted a brilliant hat-trick to secure the trophy for Atalanta.

He has shown no signs of slowing down this season, contributing seven goals and five assists from 12 appearances.

Though Atalanta managed to retain the Nigerian during the summer transfer window, they could soon be forced to cash in on him, with several top clubs competing for his signature following another stellar season.

Madrid are preparing for the possible departure of their star forward “Vinicius,” with Al-Hilal reportedly planning a record-breaking €300m bid for the Brazilian, a transfer fee that could surpass Neymar’s €222m move to Paris Saint-Germain from Barcelona in 2017.

According to Spanish outlet “Fichajes” via “El Futbolero,” the Saudi Pro League club are eyeing “Vinicius” as a marquee signing and potential replacement for Neymar, who could depart Al-Hilal by season’s end.

Los Blancos have turned their attention to Lookman as a strong candidate to fill the void should the deal for the Brazilian go through.

“Faced with uncertainty over ‘Vinícius Jr.’s’ contract renewal, the Merengues have set their sights on a promising Serie A talent. Ademola Lookman, a winger for Atalanta, has emerged as one of the main options to take the Brazilian’s place should he decide to leave the Santiago Bernabéu,” the website wrote.

“Lookman’s qualities make him an ideal candidate to strengthen Real Madrid’s attack. His versatility to play on both wings, his speed, and his dribbling ability make him an extremely dangerous player in one-on-one situations. In addition, his ability to link up with his teammates and create dangerous plays makes him a perfect complement to Carlo Ancelotti’s style of play.”

According to Transfermarkt, the Nigerian is valued at €60m, a fee Madrid will have no problem paying.

At the recent Ballon d’Or Ceremony in Paris, Lookman was ranked 14th best player in the world and is also considered the favourite for the 2024 CAF Men’s Player of the Year award.

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