- Stanbic IBTC Capital, Stanbic IBTC Bank, and Standard Bank of South Africa have reached financial close on a $250 million facility for Aradel Energy.
- The financing supports equity acquisition, refinancing, and increased production across the company’s asset base.
Stanbic IBTC Capital Limited, Stanbic IBTC Bank Limited, and Standard Bank of South Africa Limited have reached financial close on a landmark $250m financing facility for Aradel Energy Limited.
On Wednesday, the banks disclosed this in a statement. They explained that the facility supports Aradel Energy’s strategic growth plans. Specifically, it will fund the acquisition of an additional 40 per cent equity stake in ND Western Limited from Petrolin Trading Limited. In addition, it will refinance existing loans and support higher production across Aradel Energy’s current assets.
Aradel Energy operates as a wholly owned subsidiary of Aradel Holdings Plc. Moreover, the company operates the Ogbele and Omerelu onshore marginal fields, as well as OPL 227 in shallow water terrain.
Before the transaction, Aradel Energy held a 41.67 per cent equity stake in ND Western. However, after completing the acquisition, the company increased its shareholding to 81.67 per cent.
ND Western holds a 45 per cent participating interest in OML 34. It also owns a 50 per cent equity stake in Renaissance Africa Energy Company Limited.
Renaissance operates the Renaissance Joint Venture. In addition, it owns 30 per cent of one of Nigeria’s largest and most strategic energy portfolios. As a result of the transaction, Aradel Energy increased its indirect equity interest in Renaissance to 53.3 per cent. Consequently, the deal significantly strengthens the company’s upstream position and long-term value potential.
Standard Bank served as global coordinator and bookrunner for the transaction. Furthermore, the bank led the structuring, execution, and funding of the facility. In doing so, it reaffirmed its deep sector expertise and strengthened its position as a leading financier in Africa’s energy industry.
Eric Fajemisin, Executive Director for Corporate and Transaction Banking at Stanbic IBTC Bank, said the bank remains committed to Aradel Energy’s growth. He added that Stanbic IBTC Bank is proud to act as a trusted long-term partner as the company strengthens its position in Nigeria’s oil and gas sector.
Similarly, Cody Aduloju, Regional Head of Energy and Infrastructure Finance for West Africa at Standard Bank, highlighted the scale of the deal. He stated that the transaction demonstrates Standard Bank’s ability to deliver large, tailored funding solutions. He also emphasised the bank’s continued support for fast-growing indigenous oil and gas companies in Nigeria.
Meanwhile, Adegbite Falade, Chief Executive Officer of Aradel Holdings Plc, described the acquisition as a strategic milestone. He explained that the deal strengthens Aradel Energy’s competitive position across Nigeria’s oil and gas value chain. Furthermore, it supports the company’s focus on strategic growth, asset optimisation, and long-term value creation. He also expressed satisfaction with Standard Bank’s support, noting that the bank delivered a fully funded solution under tight timelines.