Accugas Limited: US$170 million
FBN Capital Limited (“FBN Capital”) was mandated by Accugas in 2012 to act as the Global Facility Coordinator, Financial Model Bank and one of the Mandated Lead Arrangers in structuring and raising a $225 million project finance facility for its gas pipeline project.
Accugas is the Nigeria-based midstream gas marketing, transportation and distribution subsidiary of Seven Energy International Limited. The transaction involved the restructuring, refinancing and raising of additional debt from a group of 4 local banks.
The facility will be utilized as follows: a) to refinance its existing $55 million project finance facility under the Ibom Power Gas Pipeline project and; b) to part finance the project costs in relation to its proposed new gas pipeline expansion project (the Calabar IPP project).
Key features of the financing structure include long-term gas supply contracts, mitigated payment risk in the forms of a GSA deposit and Worldbank Partial Risk Guarantee, reduced repayment risk due to a Revenue Support Guarantee from the Sponsor and proven market demand.