Standard Bank has backed BlueCore Gas InfraCo’s $285m (R4.7bn) acquisition of a Nigerian gas infrastructure company in a deal that highlights the flow of large-scale energy investment across Africa.
The bank provided a combination of debt and equity funding to BlueCore to buy Glover Gas & Power, the owner of Axxela, a Nigerian natural gas distributor supplying industrial and commercial customers. Standard Bank acted as the lead bank on the deal and provided funding.
Founded in 2001, Axxela supplies gas to industrial and commercial users across Nigeria. The company has been involved in the development of Nigeria’s privately owned gas distribution network and is one of West Africa’s largest gas distribution companies.
BlueCore focuses on gas and power infrastructure development in Nigeria and the wider region. It is backed by a consortium including Afrigaz Energie, a portfolio company of the Stanbic IBTC Infrastructure Growth Fund, among others. The consortium has experience across gas pipelines, power generation, and energy infrastructure.
In a statement on Wednesday, Standard Bank said the financing combines loans and equity, spans multiple jurisdictions, and was completed in a tight timeframe.
The deal is focused on gas infrastructure assets, including distribution networks and supply to industrial customers, and is linked to gas distribution and cross-border trade in West Africa.
“This transaction reflects our experience in arranging financing for infrastructure assets across African markets,” said Kagiso Rantloane, deal lead for structured capital business at Standard Bank CIB.
Standard Bank said the transaction supports Nigeria’s objectives of improving the reliability of energy supply, promoting industrial development, and “fostering broader regional integration across West Africa through cross-border gas trade”.
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