Afreximbank approves $200 million facility to support Shoreline Power and Arkad in landmark Algerian energy project

As part of its ongoing financial interventions in Algeria since becoming a full member in 2022, the African Export-Import Bank (Afreximbank) has approved a US$200-million global revolving dual-tranche facility in favour of Shoreline Power Company Limited (Shoreline) and its co-borrowers, including Arkad SpA, an Italian EPC contractor majority-owned by the Shoreline Group of Nigeria.

Supporting one of Algeria’s largest upstream infrastructure contracts

The announcement comes after the successful fourth Intra-Africa Trade Fair (IATF) held in Algeria in September 2025. The event resulted in agreements worth US$50 billion in trade and investment.

This facility will support Arkad’s contractual share in the US$980-million Hassi Bir Rekaiz (HBR) Field Development project in Algeria.

In June 2026, financing was approved for Arkad’s 44% share in the $980 million EPC contract for the HBR Field Development Phase 2a project.

This contract was awarded by Groupement Hassi Bir Rekaiz (GHBR), a joint venture of Sonatrach (Algeria), PTTEP (Thailand), and CEPSA (Spain).

Facility structure and purpose

Afreximbank acted as the sole mandated lead arranger and lender for the transaction, providing the US$200 million facility structured in two ways.

The first one is a US$110-million one-off contract finance facility to support Arkad’s issuance of performance and advance payment guarantees and working capital requirements for the HBR Phase 2a EPC contract.

The second is a US$90-million revolving global facility to finance and support Shoreline and its affiliates in bidding, construction, and development of pipeline and infrastructure projects within Nigeria and other permitted jurisdictions.

Algeria plans to build a new central processing facility for HBR Field Phase 2a. This facility will help increase the country’s oil and gas production from about 13,000 barrels per day to between 50,000 and 60,000 barrels per day.

Mrs Kanayo Awani, Executive Vice President, Intra-African Trade Finance and Export Development at Afreximbank, said, “This transaction providing Shoreline Power Company Limited and Arkad SpA with financing to execute this landmark US$980-million EPC contract in Algeria exemplifies our EPC Initiative and our Intra-African Trade Champions framework in action – enabling an African-owned engineering group to compete and deliver at the highest levels of global project execution.”

“By providing US$200 million in structured financing, we are not only supporting Algeria’s national energy infrastructure development but also advancing intra-African trade in high-value engineering and construction services among Nigeria, Italy, and Egypt.”

“This is precisely the kind of transaction that demonstrates Africa’s growing industrial capability and its capacity to shape its own development agenda. Afreximbank remains committed to being the financing partner of choice for African champions building transformative infrastructure across our continent.”

Advancing pan-African engineering capabilities

Beyond the immediate project, the facility would help Arkad and the Shoreline Group establish a credible track record as a pan-African EPC contractor capable of executing sovereign-level energy projects. It will also promote skills transfer and decrease the need for non-African construction companies.

The partnership between Arkad (a Nigerian-owned, Italian-based company) and Petrojet (an Egyptian state-owned company) highlights Africa’s ability to handle complex engineering projects by leveraging its own capital, expertise, and resources.

Under Afreximbank’s EPC Initiative, this transaction aims to equip African engineering and construction firms with the necessary financial and non-financial tools to secure and manage large-scale infrastructure projects.

It is projected to create around 6,000 jobs and boost regional supply-chain development in Algeria.

This transaction is a tangible outcome of the Intra-African Trade Fair (IATF) deal-making process and EPC twinning services at IATF2025 in Algiers. Afreximbank supported the partnership between Arkad and Petrojet and backed their successful bid for the HBR contract.

This transaction is the first time Afreximbank has supported a Sub-Saharan African contractor undertaking a major infrastructure project in North Africa. It is an important step toward deeper intra-African integration, enhanced cross-regional cooperation, and the creation of truly pan-African engineering champions.