35877 - Seven Energy Bond

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Summary of Investment Information

Project Number

35877

Company Name

SEVEN ENERGY INTERNATIONAL LIMITED

Date SPI Disclosed

Sep 30, 2014

Country

Nigeria

Region

Africa

Projected Board Date

Sep 30, 2014

Environmental Category

C - No Impact

Status

Completed

Last Updated Date

Jun 12, 2021

Department

Gbl Infrastructure & Natural Resources

Industry

Metals and Mining

Previous Events

Approved : Sep 26, 2014
Signed : Oct 1, 2014
Invested : Oct 10, 2014

Sector

Oil and Gas Production (Includes Development)

Project Description

Seven Energy International Limited, an existing IFC client (project 34450), is a Nigeria and UK based oil and gas exploration and production (“E&P”) and midstream company (“Seven Energy” or the “Company”). It is one of the few E&P companies in Nigeria with a focus on developing and commercializing gas that was historically stranded or flared, and supplying it to Nigeria''s domestic market for power generation and industrial consumption.

IFC’s commitment to provide an anchor investment in the company’s inaugural bond issue will help the company mobilize investors and successfully issue the bond. The bond proceeds will be used, among other things, to retire existing liabilities and continue funding the construction of the Company’s gas pipeline network.

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	50.0
Equity

Development Impact

Greater availability of gas is one of the key ingredients for increasing power generation in Nigeria, a country that suffers significantly from lack of electricity and where only about 50% of the population has access to electricity from the grid. The quality of service is generally poor and lack of electricity has put a constraint on the country''s economic growth. There is about 6 GW of existing capacity in Nigeria, of which only about 4.5 GW is operating. It is estimated that generation capacity will increase to 15 GW in 2020 most of which from thermal generation. Gas production and transportation are critical to the energy mix, and Nigeria harbors significant gas reserves.

In addition to supplying gas to the Ibom Power Plant, the Company will directly supply the Calabar National Integrated Power Project, a plant with a capacity of about 560 MW. Moreover, IFC funding is proposed to contribute to a potential 2014 project between Seven Energy and an IOC to eliminate approximately 23mmcfd of IOC flared gas, diverting gas to Seven Energy''s Uquo gas facility where it will be stripped of liquids and the residual gas blended with Seven Energy gas. Finally, the project will generate direct jobs and indirect jobs (through power provided to the grid and to industries including a fertilizer plant in the Akwa Ibom state), as well as government revenues.

IFC''s additionality consists of: i) mobilizing bond investors by giving an early indication of commitment, anchoring the bond; ii) providing debt capital to complete the company''s investment program aimed at increasing gas supply in Nigeria; and iii) providing investors comfort through the World Bank Group''s involvement at various levels in the energy value chain in Nigeria.

E&S Category Rationale / Risks and Mitigation

The project represents an increase in IFC’s existing financial exposure to the Company through the investment in the bond. There are no changes in IFC’s exposure to physical assets and the existing shareholder’s agreement, which covers adherence to and reporting on IFC E&S requirements, remains unchanged. For additional information, see the Environmental and Social Review Summary prepared in accordance with IFC’s initial investment in Seven Energy (project 34450): ifcextapps.ifc.org/ifcext/spiwebsite1.nsf/78e3b305216fcdba85257a8b0075079d/bbf8fa06eb61779f85257c59006ea72b?opendocument

Contacts

For Inquiries About the Project, Contact

Bruce Burrows Chief Financial Officer Seven Energy International Limited 4th Floor, 6 Chesterfield Gardens London W1J 5BQ Switchboard: 020 7518 3850

For Inquiries and Comments About IFC, Contact

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Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384
E Mail: Webmaster

Local Access of Project Documentation

Gary Bush
Seven Energy 7 Anifowose Street Victoria Island Lagos Nigeria. Main line: +234 (0) 1 - 277 0600 Fax: +234 (0) 1 - 277 0644

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