- Lekoil said Monday it had agreed to refinance a portion of and redenominate its outstanding Naira debt facilities into United States Dollars, to mitigate its exposure to local currency and interest rate volatility risks while lowering its cost of capital.

These facilities included the approximate 2.25bn Naira facility (principal) from FBNQuest Merchant Bank and the 827m Naira facility from Sterling Bank. Interest per annum on these facilities were 6% + NIBOR and 26%, respectively, the company said.

Documentation for this had now been completed and the company now had access to a new USD facility of $8.55m with FBNQ MB, which would be utilised to refinance the outstanding 3.08bn Naira facility with FBNQ MB. The original Sterling facility had been rolled into this new facility with FBNQ MB, and closed.

The FBNQ MB facility was priced at LIBOR + 10%. There is a six-month principal repayment moratorium with equal, quarterly principal repayments thereafter, the company added. As part of the transaction, the tenor on LEKOIL's facilities with FBNQ MB would be extended to 30 June 2021 from 30 June 2019.

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