Petroleum Africa
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Tuesday, June 4, 2013
Oando Energy Resources (OER) has entered into a loan agreement with Oando to refinance and supplement a previous loan provided on December 20. OER and Oando also executed a deed of repayment permitting OER to repay amounts owing under the loan agreement by the issuance of common shares of OER.
Oando owns 94.6% of the common shares of OER, on a non-diluted basis.
“This refinancing of our original loan from Oando Plc underscores the strong financial backing and ongoing support that OER continues to receive from its majority shareholder,” said PadeDurotoye, CEO of OER. “The financial flexibility afforded to us by this relationship is a key differentiator for OER, as it provides our young company with the stability and means to pursue an ambitious growth agenda within Nigeria.”
Pursuant to the loan agreement, Oando provided a facility to OER of up to $386 million bearing an annual interest rate of 5%. Of the facility, $362 million plus accrued interest is required to be repaid by September 30, 2013 while the remainder of the facility is required to be repaid on or before December 31, 2013.
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