KEY POINTS
- Afreximbank underwrote $2.5 billion of a $4 billion syndicated loan for Dangote Refinery to strengthen its finances and support expansion.
- The five-year facility aims to consolidate debt, improve capital structure, and boost the refinery’s role in Africa’s fuel supply and energy security.
- Afreximbank says it has invested about $15 billion in the Dangote Group since 2015, with the latest financing attracting strong global investor interest.
The African Export-Import Bank, Afreximbank, has underwritten $2.5 billion of a $4 billion senior syndicated term loan for Dangote Petroleum Refinery and Petrochemicals FZE, in a move aimed at strengthening the refinery’s financial structure and supporting its expansion.
Afreximbank and Access Bank were appointed as co-Mandated Lead Arrangers for the five-year facility, which is designed to consolidate existing financing, optimise the refinery’s capital structure, and align funding with its operational status and long-term growth strategy.
The bank described the transaction as a major milestone for the 650,000-barrels-per-day refinery, widely regarded as Africa’s largest refinery and petrochemical complex.
According to Afreximbank, the facility will improve balance sheet flexibility, strengthen the refinery’s financial position, and support its role as a strategic supplier of refined petroleum products to Africa and global markets.
Afreximbank’s $2.5 billion participation represents the largest share of the syndicate, highlighting its role in mobilising capital for Africa’s industrialisation, promoting intra-African trade in refined products, encouraging import substitution, and strengthening energy security.
Afreximbank highlights long-term support for Dangote Group
Since refining operations began in February 2024, Afreximbank has provided significant support to the project, including a $1 billion working capital facility. The bank also served as financial adviser on the Nigerian government’s Naira-for-Crude initiative, designed to enable crude purchases and refined product sales in local currency and reduce dependence on foreign exchange.
Speaking during a strategy engagement between Afreximbank’s Board and the Dangote Group in Cairo, Egypt, Afreximbank President and Chairman, Dr. George Elombi, said the institution takes pride in being the largest financing provider to the Dangote Group.
He disclosed that Afreximbank has invested about $15 billion in the group since 2015, noting that supporting African enterprises is key to building jobs, expanding government revenues, and strengthening the continent’s resilience.
Elombi added that the Dangote Refinery represents a major symbol of African ambition and execution, capable of boosting refining capacity, reducing imports, and opening new opportunities for intra-African trade and industrial development.
President and Chief Executive of Dangote Industries Limited, Aliko Dangote, described the financing as a crucial step toward strengthening the refinery’s financial foundation and positioning it for its next growth phase.
He expressed appreciation for Afreximbank’s continued confidence, noting that the project aims to build world-class industrial capacity serving Nigeria, Africa, and global markets.
