Chappal Energies Closes $340m Reserve-based Lending Facilities, Strengthening Financial Platform

Kayode Tokede

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, alongside a $90 million Junior Secured RBL facility provided by a leading global commodities company. 

According to the management, the transactions mark a significant milestone in the company’s financial and strategic development.

The statement said that the successful close 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.

“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 noted

According to the company, proceeds from the facilities will be used primarily to refinance acquisition bridge financing incurred in connection with the Equinor Nigeria transaction, while also providing 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. 

Chappal Energies 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 it looks to its 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.