Afreximbank Approves US$200 Million Facility for Shoreline to Support Algeria’s Energy Development
The African Export-Import Bank (Afreximbank) has approved a US$200 million global revolving dual-tranche facility in favor of Nigeria’s Shoreline Power Company Limited (Shoreline) and its co-borrowers, including Arkad SpA. The milestone financing aims to support Arkad’s contractual share in a massive US$980 million engineering, procurement, and construction (EPC) contract for the Hassi Bir Rekaiz (HBR) Field Development project in Algeria.
Approved in June 2026, the facility covers Arkad’s 44 percent stake in one of Algeria’s largest upstream infrastructure contracts, awarded by Groupement Hassi Bir Rekaiz (GHBR)—a joint venture between Algeria’s Sonatrach, Thailand’s PTTEP, and Spain’s CEPSA.
Advancing Intra-African Engineering and Trade
This strategic financing builds directly on the momentum of the fourth Intra-Africa Trade Fair (IATF) held in Algiers, where Afreximbank supported the cross-border partnership between Nigerian-backed Arkad and Egypt’s state-owned Petrojet.
The US$200 million package comprises:
- A US$110 million one-off contract finance facility supporting performance guarantees, advance payment guarantees, and working capital requirements for the HBR Phase 2a EPC contract.
- A US$90 million revolving global facility enabling Shoreline and its affiliates to bid for and develop pipeline and infrastructure projects in Nigeria and other approved jurisdictions.
“This transaction providing Shoreline Power Company Limited and Arkad SpA with the financing to execute this landmark US$980-million EPC contract in Algeria exemplifies our EPC Initiative and our Intra-African Trade Champions framework,” said Mrs. Kanayo Awani, Executive Vice President, Intra-African Trade Finance and Export Development at Afreximbank.
Boosting Production and Local Capacity
The HBR Phase 2a project involves constructing a new central processing facility designed to scale Algeria’s oil and gas production capacity from approximately 13,000 barrels per day (bpd) to between 50,000 and 60,000 bpd. Beyond generating significant foreign exchange for the Algerian economy, the project is projected to create around 6,000 jobs and catalyze regional supply-chain development across Africa.
Marking the first time Afreximbank has supported a Sub-Saharan African contractor in undertaking a major infrastructure project in North Africa, the initiative represents a vital step toward deeper cross-regional cooperation and the rise of pan-African engineering champions.
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