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Publish Date : 23-Apr-2014

Seven Energy International Limited and its wholly-owned subsidiary, Accugas Limited have announced closure of a US$170 million medium-term acquisition finance facility with FBN Bank (UK) Limited and Ecobank Nigeria Limited.

During this transaction, FBN Capital Limited acted as structuring bank, sole initial Mandated Lead Arranger, financial modelling bank and global facility coordinator. Aluko & Oyebode served as lenders legal counsel, and Royal HaskoningDHV Nederland BV represented the lenders on environmental / technical due diligence issues. UUBO and Addleshaw Goddard performed as the borrower's local and international legal counsels respectively.

This facility would partly finance the purchase of the entire issued share capital of East Horizon Gas Company Limited (EHGC) worth nearly $250 million.

Oando Plc had formed EHGC to construct and operate an 18-inch, 128 kilometres gas pipeline connecting with the Obigbo-Alscon pipeline at Ukanafun for supplying gas to an industrial offtaker in Mfamosing, Cross River State, as well as to address the requirements of other industrial users in the Calabar region.

The Chief Executive Officer of Seven Energy, Mr. Phillip Ihenacho was present during the signing of the agreements in Lagos and said that as far as his firm is concerned this deal is very significant.

He added, "We are delighted to expand our midstream operations in Nigeria with this investment. It is a perfect fit to our strategy of investing in core midstream infrastructure assets in the south east region of the country. I would also like to thank the entire team for their achievement in bringing this important financing transaction to a close."

Acquisition of EHGC by Seven Energy was in accordance with its strategic plans to expand its gas infrastructure assets in the south east Niger Delta.

The signing ceremony was also attended by the Chief Financial Officer of Seven Energy, Mr. Bruce Burrows who thanked the Lenders, FBN Bank (UK) Limited and Ecobank Nigeria Limited, for their support.

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