Seven Banks Provide $260m Funding To AGPC To Generate 1.2GW Electricity
No fewer than seven banks have provided a cumulative $260 million funding to a gas processing firm, ANOH Gas Processing Company Limited (AGPC). The funding is to fund the completion of the AGPC Gas Processing Plant, expected to generate about 1.2GW electricity.
The Economic Confidential gathered that the $260million funding was provided by a consortium of seven banks — United Bank for Africa (UBA) Plc, Zenith Bank Plc, Stanbic IBTC Bank Plc (advisor), FirstRand Bank Limited (London Branch) / RMB Nigeria Limited, Mauritius Commercial Bank Limited, Union Bank of Nigeria Plc and FCMB Capital Markets Limited.
AGPC was established by the Nigerian Gas Company (NGC) and Seplat Petroleum Development Company Plc (Seplat) on a 50-50 basis. The funds is to help it complete its gas plant project that will help Nigeria reduce its dependence on small-scale diesel generators and transit to a cleaner, less expensive fuels, such as, natural gas for power generation.
The 300MMscfd capacity project is located on OML 53 in Imo State. AGPC’s shareholders — NGC and Seplat — have each provided $210million in equity funding, while the $260million financing allows for an additional $60million at the time of completion to fund an equity rebalancing payment at that time, if appropriate.
Reacting to the development, the chairman, AGPC, Mr Yusuf Usman, said, “This financing agreement; for the development of the ANOH Gas Processing Plant will significantly contribute to the realisation of the federal government’s initiatives towards increasing natural gas utilisation in the domestic market.
With the equity of $420 million already injected by the sponsors of the project (NNPC and Seplat), both shareholders reinforce their commitment to expanding gas infrastructure in Nigeria as well as progressing towards making natural gas the future energy for Nigeria.”
On his part the managing director of ANOH Gas Processing Company Okechukwu Mba, said, “This funding agreement enables us to complete the ANOH project. Once operational, AGPC will be a significant supplier of gas to Nigeria’s power sector, supporting local employment and the cleaner generation of power for Nigerian homes and businesses.”
