Standard Bank Seals $250m Financing to Power Aradel Energy’s Expansion

Standard Bank has reached financial close on a landmark $250 million financing facility for Aradel Energy Limited, marking a major boost to the Nigerian indigenous oil and gas company’s growth strategy.

The transaction was executed through Stanbic IBTC Capital Limited, Stanbic IBTC Bank Limited, and The Standard Bank of South Africa Limited (collectively referred to as Standard Bank), which acted as Global Coordinator and Bookrunner. The bank led the structuring, execution, and full funding of the facility, underscoring its strong foothold in Africa’s energy financing landscape.

The financing is designed to support Aradel Energy’s strategic expansion plans, including the acquisition of an additional 40 per cent equity stake in ND Western Limited from Petrolin Trading Limited. It also provides for the refinancing of existing loans and funding to ramp up production across Aradel’s current asset portfolio.

Aradel Energy, a wholly owned subsidiary of Aradel Holdings Plc, operates the Ogbele and Omerelu onshore marginal fields, as well as OPL 227 in shallow offshore terrain. Prior to the deal, the company held a 41.67 per cent equity interest in ND Western. Following the acquisition, Aradel’s stake has risen significantly to 81.67 per cent.

ND Western, in turn, holds a 45 per cent participating interest in OML 34 and a 50 per cent equity interest in Renaissance Africa Energy Company Limited. Renaissance operates the Renaissance Joint Venture and owns 30 per cent of one of Nigeria’s largest and most strategic energy portfolios.

With the completion of the transaction, Aradel Energy’s indirect equity interest in Renaissance has increased to 53.3 per cent, strengthening its upstream footprint and enhancing long-term value creation prospects.

Speaking on the deal, Eric Fajemisin, Executive Director, Corporate and Transaction Banking at Stanbic IBTC Bank, said the transaction reflects the bank’s commitment to supporting leading indigenous energy companies. He noted that Stanbic IBTC is proud to partner with Aradel Energy as it consolidates its position in Nigeria’s oil and gas sector.

Cody Aduloju, Regional Head, Energy and Infrastructure Finance, West Africa at Standard Bank, added that the deal highlights the group’s ability to deliver large-scale, bespoke financing solutions while supporting the rapid growth of indigenous players in Nigeria’s energy industry.

Also commenting, Adegbite Falade, Chief Executive Officer of Aradel Holdings Plc, described the acquisition as a strategic milestone that enhances Aradel Energy’s competitiveness across the oil and gas value chain. He commended Standard Bank for delivering a fully funded solution within a tight timeframe.

The transaction further reinforces Standard Bank Group’s commitment to providing strategic capital to clients pursuing transformational growth across Africa’s energy sector.