Nigeria’s Dangote Petroleum Refinery and Petrochemicals received $2.5 billion from the African Export-Import Bank (Afreximbank) under a $4 billion syndicated term loan, reinforcing the financial standing of Africa’s largest oil refinery and supporting its next stage of expansion.
Afreximbank and Access Bank served as co-mandated lead arrangers for the five-year facility, which refinances existing debt and matches the refinery’s financing structure with its operational phase.
The Dangote refinery, with a capacity of 650,000 barrels per day, started refining operations in February 2024. The facility aims to supply refined petroleum products to Nigeria and regional markets and help reduce fuel imports.
Afreximbank provided the largest portion of the financing at $2.5 billion, according to the bank. The consortium did not disclose the identities of the other participating lenders.
Since operations began, Afreximbank has extended a $1 billion working capital facility to the refinery and has acted as a financial adviser on Nigeria’s naira-for-crude program, which enables crude purchases and refined product sales in local currency.
Afreximbank stated that it has invested about $15 billion in the Dangote Group since 2015.
Dangote Industries Chairman Aliko Dangote said the refinancing will strengthen the refinery’s financial position and support its next phase of operations.
The loan drew interest from both African and international lenders, which Afreximbank said reflects continued demand for financing large energy infrastructure projects.
Nigeria, Africa’s largest oil producer, has long relied on imported fuels because of limited domestic refining capacity, a situation that has contributed to pressure on foreign exchange reserves.
source: www.cnbcafrica.com
African Energy Council