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Oando Plc yesterday secured a N94.6 billion facility from nine local banks to enable it restructure its debt positions and improve earnings.

The financing, coordinated by the mandated Lead Arranger, Access Bank Plc, is a five-year Medium Term Note (MTN) given at the Nigeria Interbank Offered Rate (NIBOR) plus 200 basis points, to assist the company meet its financial obligations in the low crude oil price environment.

In a statement, Oando Plc said it has substantially reduced its debt profile in the last 24 months, and the new loan facility would enable key restructuring of its remaining debt.

Other banks in the financing deal include Diamond Bank, Ecobank, First City Monument Bank, Fidelity Bank, Stanbic IBTC Bank, United Bank for Africa Plc, Union Bank and Zenith Bank.

Oando is the largest indigenous oil and gas player in the Sub Saharan Africa and this MTL facility would allow it to optimize its balance sheet towards greater efficiency and improve its working capital.

Oando has pledged to continue to exercise strong financial discipline, and the transaction further signifies the steadfast commitment from local banking institutions to support the sustained growth and development of the Nigerian oil and gas sector in spite of the rigid economic climate.

The company provides gas and power solutions to over 170 industrial and commercial customers is also concluding the 10km Ijora to Marina expansion of its Greater Lagos pipeline network to increase supply capacity, while providing a cheaper power solution for industries and commercial enterprises along the axis.

Already the largest indigenous supply and trading player in the sub-Saharan region, Oando has increasingly focused on efficacy in the reception of products at its newly completed jetty in Apapa, Lagos.

The jetty will allow 45,000 DWT vessels to berth and discharge their products without lightering and demurrage, and will enable cost-savings across the industry in excess of $120 million per annum and lead to higher margin volumes with an estimated $36 million expected annually in revenue.