African Export-Import Bank (Afreximbank) and Heirs Energies Ltd have signed a $750 million financing agreement to bolster the energy firm’s capital structure and fund its field development program in Nigeria. The deal, a dual-tranche senior secured reserve-based lending facility arranged by Afreximbank, aims to provide liquidity and support Heirs Energies’ growth strategy as it seeks to increase oil and gas production.
Afreximbank acted as the mandated lead arranger, facility agent, and security agent for the transaction. According to Afreximbank President George Elombi, this partnership demonstrates the bank’s commitment to empowering African entrepreneurs and creating value. Elombi also announced plans to channel significant capital into the proposed African Energy Bank.
Heirs Energies Chairman Tony Elumelu noted that the transaction highlights the role of African capital in financing the continent’s future. The deal builds on a 2021 transaction in which Heirs Energies, then known as Heirs Oil & Gas, acquired a 45% stake in OML 17 for $1.1 billion, backed by Afreximbank and other lenders. Since then, the company has doubled its crude output to approximately 50,000 barrels per day and has become a leading gas supplier to Nigeria’s power sector.
The financing agreement is expected to support Heirs Energies’ efforts to ramp up oil and gas production, aligning with the company’s growth strategy. The partnership between Afreximbank and Heirs Energies is a significant development in Nigeria’s energy sector, demonstrating the potential for African capital to drive growth and development in the industry.
With this deal, Heirs Energies is poised to further expand its operations and contribute to Nigeria’s energy landscape. The agreement also underscores Afreximbank’s role in supporting African businesses and promoting economic development on the continent. As the energy sector continues to evolve, this partnership is likely to have a lasting impact on Nigeria’s energy industry and the wider African economy.
