The African Export-Import Bank (Afreximbank) has announced that it has disbursed a historic $975 million financing facility to partly fund the management buyout (MBO) of Oryx Energies SA (OESA), the holding company of Addax Energy SA. This move marks a significant milestone in strengthening Africa's energy security and demonstrates the growing capacity of African financial institutions to support the continent's industrial future with African capital.
The financing facility is a significant step towards enabling one of Africa's largest and oldest independent providers of energy products and services to transition to majority African ownership. According to a press release, this transaction underscores Afreximbank's commitment to providing appropriately structured financing to African businesses to enhance their operations, develop energy infrastructure, and expand trade across the continent.
The buyout offers the continent an opportunity to retain its economic value, move towards energy sovereignty, and align its resources with Africa's development agenda. Moussa Diao, CEO of Oryx Energies SA, stated that the management buyout is a crucial milestone in the company's history and demonstrates the strength of African leadership in steering well-established businesses towards new opportunities.
Diao emphasized that the transaction was made possible by the trust and support of Afreximbank, whose involvement not only reflects confidence in the company's leadership but also highlights the opportunities that Africa continues to offer. He noted that the company's ambition is to strengthen its energy trading and infrastructure development activities across Africa.
Dr. George Elombi, President of Afreximbank and the bank's Board of Directors, stated that this transaction aligns with Afreximbank's mission to foster the structural transformation of African economies. He emphasized that the management buyout provides a strategic platform to deepen the African energy industrial ecosystem, enhance energy infrastructure, and derive more value from the continent's abundant natural resources.
Elombi also noted that the transaction will promote increased African ownership and participation in development by empowering local entrepreneurs, enhancing local value creation, building capacities, generating employment, and retaining more economic value on the continent. Afreximbank acted as the sole lender, credit agent, guarantee trustee, and escrow agent for this transaction.
The $975 million credit line is part of Afreximbank's broader support for the African energy sector, including investments in upstream production and refining capacities. The bank's involvement in this transaction demonstrates its role in supporting well-established African businesses and enabling their continued growth and development.
Key points
- Afreximbank approves $975 million credit line for Oryx Energies SA buyout
- The transaction marks a significant milestone in strengthening Africa's energy security
- The buyout enables Oryx Energies SA to transition to majority African ownership
