Africa Oil announced that it had entered into an agreement to raise $50 million from the IFC in a private placement, giving the development finance institution a 6.83% stake I the company. The proceeds will primarily be used to fund the company’s oil and gas exploration, appraisal and development activities in the South Lokichar basin in north-western Kenya.
“The sustainable development of the South Lokichar project holds significant potential for Kenya’s continued economic growth,” said Lance Crist, IFC Global Head of Natural Resources. “Through this investment, IFC looks forward to an active engagement with Africa Oil that will help pioneer Kenya’s entry into the cadre of oil producing nations in sub-Saharan Africa.”
The company expects the deal to close on August 31st, subject to regulatory approvals and other customary closing conditions.
In May 2015, Africa Oil raised $100 million from Africa-focused private equity firm Helios Investment Partners in a private placement exchange for a 12.37% stake.