Aradel Energy Limited, a leading indigenous Nigerian energy company, has secured a $250 million strategic financing facility through a consortium led by Stanbic IBTC Capital Limited, Stanbic IBTC Bank Limited, and Standard Bank of South Africa, boosting the company’s expansion and investment plans.
The funding package is aimed at supporting Aradel Energy’s long-term growth strategy, including the acquisition of an additional 40 per cent equity stake in ND Western Limited from Petrolin Trading Limited. The proceeds will also refinance existing debt and facilitate increased production across the company’s current asset base.
A wholly owned subsidiary of Aradel Holdings Plc, Aradel Energy operates the Ogbele and Omerelu onshore marginal fields, as well as OPL 227 in shallow water terrain. Prior to the transaction, the company held a 41.67 per cent stake in ND Western; the acquisition raises its shareholding to 81.67 per cent.
ND Western holds a 45 per cent participating interest in OML 34 and a 50 per cent equity interest in Renaissance Africa Energy Company Limited (Renaissance), the operator of the Renaissance Joint Venture and a 30 per cent owner of one of Nigeria’s most strategic energy portfolios. Following the acquisition, Aradel Energy’s indirect equity interest in Renaissance has increased to 53.3 per cent, enhancing its upstream position and long-term value creation potential.
Standard Bank acted as Global Coordinator and Bookrunner for the deal, leading the structuring, execution, and funding of the facility and cementing its reputation as a leading financier in Africa’s energy sector.
Eric Fajemisin, Executive Director of Corporate and Transaction Banking at Stanbic IBTC Bank, said: “As Aradel Energy strengthens its position as one of Nigeria’s premier oil and gas companies, Stanbic IBTC Bank is proud to support its growth ambitions as a trusted long-term partner.”
Cody Aduloju, Regional Head of Energy & Infrastructure Finance, West Africa at Standard Bank, added: “This transaction demonstrates Standard Bank’s capacity to deliver large-scale, tailored funding solutions and reinforces our commitment to Nigeria’s fast-growing indigenous energy sector.”
Aradel Holdings Plc CEO Adegbite Falade stated: “The acquisition enhances Aradel Energy’s competitive position across Nigeria’s oil and gas value chain, reinforcing our focus on strategic growth, asset optimisation, and long-term value creation. We are delighted to have Standard Bank as a partner, delivering a fully funded solution within tight timelines.”
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