Tullow Oil, the successful oil explorer in Turkana, has raised Sh258 billion ($2.5 billion) in new loans to help fund its Africa’s operations in 2018.
The firm announced Wednesday the new cash injection comprises loans at Sh248 billion ($2.4 billion) in a commercial bank facility and a further Sh10.3 billion ($100 million) loan from the International Finance Corporation, the World Bank Group’s private sector lending arm.
The firm, which together with its partners African Oil Corporation of Canada and Maersk Oil & Gas of Denmark which has struck in excess of 750 million barrels of oil in Lokichar basin since February 2012, used its assets to secure the funds.
“The transaction, which was formally launched in early October following the resolution of the Ghana – Cote d’Ivoire border dispute, was materially over-subscribed and extends the maturity of the Group’s existing RBL credit facilities,” Tullow said in a statement.
“Tullow has also decided to reduce the commitments of its Revolving Corporate Credit Facility to $600 million (Sh62 billion) from $800 million (Sh82.7 billion), ahead of the scheduled amortisation in January 2018.”
The revolving facility – meaning its repayments are not fixed unlike in the installment facility – has a three-year grace period and will mature in November 2024.
Tullow’s chief financial officer Les Wood said it would be in a stronger financial position in 2018 because it has no near-term repayment obligations after it secure the refinancing deal.