Business
Nigeria: Dangote leads in record syndicated loan surge
Oando Plc obtained US$800 million of loans this month to fund the purchase of Nigerian oil assets from ConocoPhillips. The loan included a US$350 million portion provided by local banks and a US$450 million piece syndicated to international lenders, including Standard Bank Group Ltd, BNP Paribas SA and Standard Chartered Plc, according to a January 31 statement from the company.
Nigeria’s borrowers must withstand a sell-off of emerging-market currencies that’s led the country’s central bank to defend the naira. Last week the currency fell to the lowest level since Bloomberg started compiling data in 1999.
“Loans are very flexible instruments and the market tends to remain open during times of stress, and offers borrowers that have established relationships with banks the opportunity to have a conversation about their funding requirements,” according to Clare Dawson, managing director of the London-based Loan Market Association, a trade body for the industry.
