Afreximbank spearheads $4 billion financing for Dangote Refinery with a $2.5 billion commitment
Afreximbank has pledged $2.5 billion towards the financing of Dangote Refinery, spearheading a $4 billion initiative aimed at enhancing expansion and fortifying operations.
The African Export-Import Bank has backed $2.5 billion in a $4 billion syndicated loan for the Dangote Petroleum Refinery and Petrochemicals, strengthening its financial standing and aiding long-term growth initiatives.
The five-year facility, organized with Access Bank as the co-mandated lead arranger, aims to consolidate existing debt and enhance the refinery’s capital structure.
The financing represents a significant achievement for the Dangote Refinery, which stands as Africa’s largest refining and petrochemical complex, boasting a capacity of 650,000 barrels per day.
Afreximbank’s contribution constitutes the largest portion of the syndicate, highlighting its pivotal role in mobilizing capital for industrial projects throughout the continent.
The bank stated that the agreement is in line with its mission to foster industrialization, lessen reliance on imported petroleum products, and enhance intra-African trade.
Since operations commenced in February 2024, Afreximbank has provided the refinery with a $1 billion working capital facility and advisory support, including participation in the Naira-for-Crude initiative.
During his address in Cairo, George Elombi, President and Chairman of Afreximbank, emphasized that the bank’s ongoing support demonstrates its confidence in African businesses.
He revealed that the bank has dedicated approximately $15 billion to the Dangote Group since 2015, emphasizing the strength of its collaboration.
Aliko Dangote, President and Chief Executive of Dangote Industries Limited, characterized the financing as an essential move to bolster the refinery’s financial foundation and prepare it for future expansion.
He observed that the facility would enhance the growth of top-tier industrial capacity to cater to Nigeria, Africa, and international markets.
The syndicated loan garnered interest from both African and international financial institutions, showcasing robust investor confidence in the refinery’s contribution to bolstering energy security and promoting industrialization throughout the continent.
