At a Glance
- Standard Bank closes $250 million energy financing, backing Aradel Energy expansion and Nigeria oil and gas growth.
- Aradel Energy boosts ND Western stake to 81.67%, gaining control of key upstream assets.
- Deal refinances loans and funds production growth, strengthening indigenous energy players in Nigeria.
Standard Bank Group, through Stanbic IBTC Capital Limited, Stanbic IBTC Bank Limited and Standard Bank of South Africa Limited, has reached financial close on a $250 million financing facility for Aradel Energy Limited.
The bank said in a statement Wednesday that the funding supports Aradel Energy’s expansion plans, including the purchase of an additional 40 percent equity stake in ND Western Limited from Petrolin Trading Limited. The facility will also refinance existing loans and fund higher output from Aradel’s current assets.
Aradel Energy is a wholly owned subsidiary of Aradel Holdings Plc. The company operates the Ogbele and Omerelu onshore marginal fields, as well as OPL 227 in shallow-water terrain.
Aradel raises ND Western stake
Before the deal, Aradel Energy held a 41.67 percent interest in ND Western. Following completion, its stake has risen to 81.67 percent, giving the company greater control over key producing assets.
ND Western holds a 45 percent participating interest in OML 34 and a 50 percent equity stake in Renaissance Africa Energy Company Limited. Renaissance operates the Renaissance Joint Venture and owns 30 percent of one of Nigeria’s largest energy portfolios.
As a result of the transaction, Aradel Energy’s indirect interest in Renaissance has increased to 53.3 percent, strengthening its footprint across Nigeria’s upstream oil and gas sector.
Standard Bank leads Aradel energy financing
Standard Bank, acted as global coordinator and bookrunner, overseeing the structure, execution and funding of the facility. The lender said the transaction highlights its experience in financing complex energy deals across Africa.
Eric Fajemisin, executive director for corporate and transaction banking at Stanbic IBTC Bank, said the bank was pleased to support Aradel Energy as it expands its operations.
Cody Aduloju, regional head for energy and infrastructure finance in West Africa at Standard Bank, said the deal reflects the group’s focus on backing indigenous energy companies with tailored funding.
Aradel Holdings Chief Executive Officer Adegbite Falade said the acquisition improves the company’s position across the oil and gas value chain and was completed within tight timelines.
Standard Bank said the transaction underscores its broader commitment to providing long-term capital to clients in Nigeria’s energy sector.
