Nigerian oil firm Oando said on Monday it has secured a 94.6 billion naira ($475 mln) loan facility from 10 domestic banks under plans to restructure its finances and return to profitability this year.
| Oando filling station |
The financing led by Access Bank, includes Diamond Bank, Ecobank, FCMB, Fidelity Bank, Stanbic IBTC Bank, UBA, Union Bank and Zenith Bank.
The facility is a five-year term loan, paying Nigerian interbank rate plus 2 percentage points with a three-year moratorium on principal.
"In a bid to return to profitability in 2016, I am happy to announce the successful completion of restructuring our overall debt profile," Chief Executive Wale Tinubu said in a statement.
Oando is still due to post results for 2015, having reported a $246 million loss in the nine months to September. The company posted a record loss of $1.10 billion for 2014.
It paid $1.5 billion to acquire ConocoPhillips' Nigerian business in 2013, when oil prices were at a peak. But high financing costs coupled with the plunge in oil prices have hit profits, leaving it unable to service its debt.
In April Fidelity Bank said it had placed a 22.4 billion naira loan ($113 mln) to Oando on a watchlist and taken a special provision of 5 percent on the advice of Nigeria's central bank to all lenders exposed to the company.
Fidelity then said the central bank had given lenders a deadline to reach a deal to resolve the debt issue,which would include a sale of assets.
Oando said on Monday its restructuring plan would include the sale of assets worth $350 million this year.
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