Banwo & Ighodalo Advises a Syndicate of International Lenders on Record-Breaking Oil and Gas Financing

Banwo & Ighodalo is pleased to announce its role in the successful closing of one of the largest oil and gas acquisitions to take place in Africa in the last decade.  Our firm advised a syndicate of international banks, global investment funds, and financial institutions, including Standard Chartered Bank, ABSA Bank Limited and the African Export-Import Bank in connection with the US$1,100,000,000 (One Billion, One Hundred Million United States Dollars) term loan facility advanced to TNOG Oil and Gas Limited and TNOG Pipelines Limited (affiliates of Heirs Holdings Limited and Transnational Corporation of Nigeria Plc).  The funds are earmarked to finance the acquisition of a 45% participating interest in Nigerian oil license OML 17 and related assets from Shell Petroleum Development Company of Nigeria Limited, Total E&P Nigeria Limited and Nigerian Agip Oil Company Limited.

This acquisition financing is ground-breaking, as the hybrid debt structure, which includes a combination of multi-tiered financing, a convertible facility and accordion features (thereby giving the Borrowers the ability to increase the commitments across the entire capital structure from time to time), is the
first of its kind in the African oil and gas market.  It is also the first divestment in Nigeria by Shell, Total and NAOC to use a deferred purchase-price component.

The transaction not only demonstrates our firm’s expertise in advising on complex, syndicated cross-border financings and navigating the Nigerian oil and gas regime, but also highlights the seamless synergy between our practice groups which we leverage to provide our clients with innovative solutions in the face of the current global financial climate.

The members of the Banwo & Ighodalo team that advised on the transaction include:

Energy & Natural Resources Practice Group

Kenneth Etim, Managing Partner
Kehinde Ojuawo, Partner
Akindeji Oyebode, Senior Associate
Adetutu Sanusi, Senior Associate
Tobi Adebowale, Associate

Banking & Finance Practice Group

Seyi Bella, Partner
Rochelle Smith, Associate
Ibrahim Hassan, Associate
Basirat Raheem-Muhammed, Associate