Chappal Energies completes $340m, $90m lending

Chappal Energies, through its subsidiary, Chappal Investments Limited, has successfully completed a $340 million Senior Secured Reserve Based Lending (RBL) facility provided by a syndicate of leading international and African financial institutions.

The completion of the $340 million RBL facility is alongside a $90 million Junior Secured RBL facility provided by a leading global commodities company. The transactions mark a significant milestone in the Company’s financial and strategic development.

The successful close, according to the company, follows a rigorous technical, legal, and commercial due diligence process and reflects lender confidence in the quality of Chappal’s asset base, governance framework, and disciplined operating model.

The Management of Chappal, in a statement on Thursday, said, “Achieving this outcome in a challenging global financing environment underscores the resilience of the Company’s business and its credibility with international capital providers.”

The statement, which was made available to The Nation, said proceeds from the facilities will be used primarily to refinance acquisition bridge financing incurred in connection with the Equinor Nigeria transaction.

It added that the facilities will also provide ongoing funding to support field development, production optimisation, and broader operational requirements across Chappal’s asset portfolio.

“The facilities establish a stable, long term financing structure aligned with the Company’s reserve base and cash flow profile,” it stated, noting that they strengthen the Company’s financial platform and growth outlook.

Chappal Energies said it remains focused on executing its strategy to become a pan African energy company operating to international standards.

“The company continues to engage constructively with regulators, partners, and stakeholders, and remains committed to responsible operations, strong governance, and sustainable value creation as we look to our next acquisition opportunity

“This transaction represents a strong endorsement of Chappal Energies’ strategy, assets, and management team, and positions the Company well for its next phase of growth,” it stated.