Guaranty Trust Bank, along with Shell Western Supply and Trading, a subsidiary of the giant Royal Dutch Shell, approved a $270 million loan for AMNI, a Nigerian-based small independent producer. The agreement’s financial terms have not been disclosed.
“We do not usually issue press statements for facilities and loans,” Guaranty Trust Bank’s head of communication told media asking for more information. However, the agreement will give Shell Western Supply and Trading full access to the 16,000 barrels of oil produced daily by AMNI.
Let’s note that apart from the government, Guaranty Trust Bank also grants loans to the country’s oil and gas sector. According to the bank’s financial statement, by December 31, 2017, the outstanding loans granted to this sector was 535.2 billion naira (about $1.5 billion), an amount almost equal to its off-balance sheet commitments. In general, 2017 has been a good year for Guaranty Trust Bank as its net profit increased by 29% to 170.4 million naira, despite a significant surge in operating costs (200 billion naira). This performance was backed by the improvement in net interest income, thanks to a significant drop in the bad debts.