The Chicason Group of companies using its A-Z Petroleum Limited has secured an African Export-Import Bank’s (Afreximbank) $80-million dual tranche loan and credit facility to finance the company’s expansion activities in Ghana, with the importation of a lubricant blending plant, a plastic making equipment and the construction of a 40-metric ton tank farm.

Chairman of Chicason Group, Chika Okafor in Cairo, Egypt, at the deal signing ceremony of the loan, said, A-Z Petroleum Nigeria Limited is targeting a major boost in its petroleum products manufacturing and distribution capacity.

The leading indigenous West Africa oil and gas sector operator would receive the first tranche of the facility, structured as a $30 million five-year term loan.

The second tranche, a $50 million standby letter of credit facility, is for the importation of petroleum products under petroleum products supply contracts between A-Z Petroleum and approved sellers. 

Jean-Louis Ekra, president of Afreximbank, said during the signing ceremony at the Bank’s headquarters in Cairo, Egypt that the transaction demonstrated the institution’s continued commitment to championing the promotion of trade across Africa, in line with its trade finance and development mandate. 

“We are providing this facility in a bid to deepen and broaden our support to Nigeria, Ghana and the African petroleum sector,” stated Ekra.

He noted that since its creation, Afreximbank had continually supported Nigerian corporates, and had been an active supporter of the government’s local content policy. 

Responding, Chika Okafor, chairman of A-Z Petroleum Limited, said, the transaction marked the beginning of a new relationship between Afreximbank and the Chicason Group, of which A-Z Petroleum is a subsidiary, as it opened up enormous opportunities for the Bank to work with the Group. 

Afreximbank is the arranger, agent, security trustee and issuing bank for the facility while Diamond Bank of Nigeria Plc is the designated local administrative agent and risk participant.

A-Z Petroleum (Ghana) Limited is the corporate guarantor and Ace Audit & Expertise Nigeria Limited is the collateral manager. 

The Chicason Group is an African indigenous conglomerate with operational presence in countries across the continent, including Nigeria, Ghana, Sierra Leone, Burundi and Guinea.