Nigerian National Petroleum Corporation (NNPC) $1.5 billion refinancing

Overview:

• The Nigerian National Petroleum Corporation (NNPC) refinanced its $1.5 billion loan facility, secured in 2013. 
• Shortly after the loan was undertaken the NNPC made an announcement: "The management of the Nigerian National Petroleum Corporation, NNPC, has said the so called $1.56 billion loan the Corporation is alleged to be proposing to obtain is actually not a loan but a forward sales arrangement to offset accumulated legacy liabilities incurred as a result of crude oil and product losses, pipeline vandalism and demurrage on products in the strategic reserve stock.*
• As a result of this the company sold crude oil to an SPV in order to completed the terms of the forward sale financing agreement. 
• This was Nigeria's largest downstream financing  in the oil and gas sector at the time. 

John Crabb - Journalist 

* (http://www.nnpcgroup.com/PublicRelations/NNPCinthenews/tabid/92/articleType/ArticleView/articleId/438/156bn-Not-Loan-But-Forward-Sales-Arrangement-NNPC-GMD.aspx)