US-based oil and gas group New Age has received an up to US$425mn loan facility led by energy fund EIG and the Africa Finance Corporation (AFC) for the development of fields in Africa.

An initial US$350mn has been disbursed, with an accordion feature allowing for an additional US$75mn to follow. The AFC itself is investing US$75mn in the deal, and the deal received support from five institutions in total, including EIG and a Middle East-based sovereign wealth fund.

The facility will be used to finance New Age’s offshore oil and gas fields in Congo-Brazzaville, Cameroon and Nigeria, as well as a further oil field in Iraqi Kurdistan Iraq.

Hogan Lovells advised EIG and AFC as principal senior lenders. London infrastructure, energy, resources and projects partner Richard Tyler says: “This presented both a challenge and opportunity in the current market – new upstream oil and gas financings are relatively rare at the present moment due to the low oil price, and involve a variety of country-specific issues; however they present attractive commercial opportunities for specialist funds and lenders.”

Clyde & Co advised New Age on the transaction.