Standard Bank facilitates Nigerian natural gas deal
Bank backs Bluecore Gas InfraCo's acquisition of Axxela.
By Standard Bank
Standard Bank is proud to have delivered a comprehensive $285 million debt and equity financing solution, enabling Bluecore Gas InfraCo to acquire 100% shareholding in Glover Gas & Power, the 100% shareholder of Axxela, a leading player in Nigeria’s natural gas sector.
Helios Investment Partners recently announced the sale of its 75% stake in Axxela to BlueCore. Alongside the transaction, Sojitz Corporation, the Tokyo-listed conglomerate, exercised its tag-along rights to sell its 25% interest in the company.
Acting as Mandated Lead Arranger and Financier, Standard Bank delivered a bespoke financing solution that empowered Bluecore to secure the acquisition of Axxela in a highly competitive bid process involving over 15 interested parties.
Since its inception in 2001, Axxela has become one of West Africa’s largest regional gas distributors, pioneering the development of Nigeria’s private sector-led natural gas distribution network. The company operates across the full spectrum of the natural gas value chain, delivering energy solutions to industrial and commercial clients. As a designated shipper on the West African Gas Pipeline and a member of the West African Power Pool, Axxela plays a pivotal role in regional energy distribution and cross-border energy trade.
Bluecore drives the advancement of gas and power infrastructure development across Nigeria and West Africa. Built on a strategic alliance, it draws on the combined expertise of Afrigaz Energie LLP (a portfolio company of the Stanbic IBTC Infrastructure Growth Fund, managed by Stanbic IBTC Asset Management), Levene Energy Development, emPERSAND, and Energy& LLP. Together, the partners offer deep investment and operational experience in gas pipelines, power generation and distribution, and renewable energy.
Leveraging world-class unrivalled deal structuring skills, deep sector expertise, and thorough understanding of Nigeria’s regulatory landscape, Standard Bank delivered a sustainable funding solution while navigating stringent timeless and addressing complex transaction dynamics and regulatory requirements.
“This transaction underscores Standard Bank’s connectivity and expertise across Africa. By combining our deep local sector knowledge with global structuring expertise, we successfully navigated complex, multi-jurisdictional challenges to deliver a robust solution for all stakeholders. We are proud to strengthen our partnership with Axxela, a key player in West African infrastructure, and to collaborate alongside strong sponsors in Bluecore, and its shareholders,” explains Kagiso Rantloane, Deal Lead, Structured Capital Business at Standard Bank.
This transaction marks a significant milestone in Standard Bank’s partnership with Bluecore’s shareholders, highlighting ongoing commitment to supporting capital allocators across Africa. The strong alignment between Bluecore’s ambitions and our purpose enabled us to deliver a financing solution and insights that best support the group’s growth strategy. By combining deep sector expertise with innovative funding solutions, we empower our clients to navigate Africa’s diverse markets and achieve their strategic objectives.
“Standard Bank brought deep sector insight, disciplined execution, and a clear understanding of the strategic importance of the Axxela platform. Their team remained fully engaged throughout the transaction, working constructively with the consortium to deliver a financing solution that supports long-term value creation,” said Nzan Ogbe, Chief Executive Officer of Levene Energy Holdings and a Director in BlueCore InfraCo.
This transaction directly advances Nigeria’s objectives for cleaner and more reliable energy, while also fostering industrial growth, infrastructure development, and broader regional integration across West Africa through cross-border gas trade.
“The successful conclusion of this landmark transaction exemplifies our deep and unwavering commitment to the continent’s energy transition as a strategic lever for sustainable growth. We were able to leverage our deep multidisciplinary sector and structuring capabilities to put forward a comprehensive and fit for purpose financing solution to Bluecore. We believe Bluecore is well positioned to drive the next phase of growth for Axxela and Standard Bank will continue to act as a strategic partner and trusted advisor,” said Tyson Sithole, Executive Head Equity Finance, Structured Capital at Standard Bank.
At Standard Bank, our commitment goes beyond delivering financial solutions, we strive to be a driving force for economic transformation across Africa. Partnering with visionary clients who share our dedication to investing in the continent empowers us to support growth and unlock new opportunities. This transaction stands as a testament to our purpose: Africa is our home, we drive her growth.
Impressive structuring work getting this deal across the line. The$285M financing for Bluecore's Axxela acquisition shows how critical local market expertise is when navigating West African energy infrastrcture deals. I've seen similar transactions stumble in the due diligence phase when banks underestimate regulatory complexity. The cross-border element via the West African Gas Pipeline adds an interesting dimension here, essentially tying this into regional energy security beyond just Nigerian domestic policy.