Standard Bank, Stanbic IBTC Complete $250m Financing Deal for Aradel Energy

Nume Ekeghe

A consortium led by Stanbic IBTC Capital Limited, Stanbic IBTC Bank Limited, and Standard Bank of South Africa has reached financial close on a $250 million strategic financing facility for Aradel Energy Limited, marking a major boost to the indigenous energy company’s expansion plans.

In a statement, they noted that the funding package was designed to underpin Aradel Energy’s long-term growth strategy, including the acquisition of an additional 40 per cent equity stake in ND Western Limited from Petrolin Trading Limited.

Proceeds from the facility would also be used to refinance existing debt and support higher production levels across the company’s current asset portfolio.

Aradel Energy is a wholly owned subsidiary of Aradel Holdings Plc and the operator of the Ogbele and Omerelu onshore marginal fields, as well as OPL 227 in shallow water terrain.

Before the transaction, Aradel Energy held a 41.67per cent equity interest in ND Western. Following the completion of the acquisition, its shareholding in ND Western has increased to 81.67per cent.

ND Western holds a 45 per cent participating interest in OML 34 and a 50per cent equity interest in Renaissance Africa Energy Company Limited (Renaissance).

Renaissance is the operator of the Renaissance Joint Venture and a 30per cent owner of one of Nigeria’s largest and most strategic energy portfolios.

As a result of the transaction, Aradel Energy’s indirect equity interest in Renaissance has increased to 53.3 per cent, significantly strengthening the company’s upstream position and long-term value creation potential.

Standard Bank acted as Global Coordinator and Bookrunner, leading the structuring, execution, and funding of the facility.

The transaction affirms the Bank’s deep sectoral expertise and reinforces its position as a leading financier in Africa’s energy industry.

Executive Director, Corporate and Transaction Banking, Stanbic IBTC Bank, Eric Fajemisin stated: “As Aradel Energy consolidates its position as one of Nigeria’s leading oil and gas companies, Stanbic IBTC Bank is proud to serve as a trusted long-term partner supporting the Company’s growth ambitions.”

The Regional Head, Energy & Infrastructure Finance, West Africa at Standard Bank, Cody Aduloju said: “The transaction illustrates Standard Bank’s ability to deliver large-scale, tailored funding solutions and further demonstrates our support to the fast-growing indigenous companies of Nigeria’s oil and gas sector.”

Commenting on the transaction, Chief Executive Officer of Aradel Holdings Plc, Adegbite Falade stated: “The acquisition bolsters Aradel Energy’s competitive positioning across Nigeria’s oil and gas value chain and supports our commitment to strategic growth, asset optimisation, and enduring value creation.

“We are pleased to have partnered with Standard Bank, who supported us and delivered a fully funded solution under very tight timelines.”

The statement noted that the transaction reinforced Standard Bank Group’s commitment to providing strategic capital to clients as they execute on their transformative growth objectives.

By delivering tailored financing solutions that enable sustainable value creation, the Bank remains a trusted partner to leading corporates across Africa’s evolving energy landscape.