Seplat’s Subsidiary, Westport Oil Secures $50m Offtake Lending Facility
Westport Oil Limited, a subsidiary of Seplat Energy Limited, has secured a $50 million offtake linked reserved based lending facility due April 2027.
The Offtake Facility is subordinated to the $110 million senior reserve based lending facility (the ‘’RBL’’).
The Offtake Facility is subordinated to the $110 million senior reserve based lending facility (the ‘’RBL’’).
It attracts an initial interest of Libor +10.5 per cent payable semi-annually and is scheduled to commence repayment from March 2023.
Affirming this, a notice signed by the Chief Financial Officer of Seplat, Mr Emeka Onwuka read: ‘’ Seplat Energy Plc (Seplat), a leading Nigerian independent energy company listed on both the Nigerian Exchange Limited and the London Stock Exchange, announces that its wholly owned subsidiary, Westport Oil Limited, has successfully raised a $50 million offtake linked reserved based lending facility due April 2027 (the “Offtake Facility”).
Affirming this, a notice signed by the Chief Financial Officer of Seplat, Mr Emeka Onwuka read: ‘’ Seplat Energy Plc (Seplat), a leading Nigerian independent energy company listed on both the Nigerian Exchange Limited and the London Stock Exchange, announces that its wholly owned subsidiary, Westport Oil Limited, has successfully raised a $50 million offtake linked reserved based lending facility due April 2027 (the “Offtake Facility”).
” The Offtake Facility is subordinated to the $110 million senior reserve based lending facility .The Offtake Facility carries initial interest of Libor + 10.5 per cent payable semi-annually and is scheduled to commence repayment from March 2023.’’
An offtake agreement is an arrangement between a producer and a buyer to purchase or sell portions of the producer’s yet-to-be-manufactured goods.
An offtake agreement is an arrangement between a producer and a buyer to purchase or sell portions of the producer’s yet-to-be-manufactured goods.
It is usually negotiated in advance and it helps buyers lock in price, while guaranteeing supply of a product. One of the advantages of this agreement is that it grants producers easy access to finance.
Westport Oil Limited had earlier refinanced its existing $100 million reserve-based lending (RBL) facility due November 2023, with a new five-year $100 million reserve-based lending (RBL) facility due March 2026.
The RBL carries initial interest of Libor +8 per cent payable semi-annually and is scheduled to commence repayment from March 2023.
Westport Oil Limited had earlier refinanced its existing $100 million reserve-based lending (RBL) facility due November 2023, with a new five-year $100 million reserve-based lending (RBL) facility due March 2026.
The RBL carries initial interest of Libor +8 per cent payable semi-annually and is scheduled to commence repayment from March 2023.
