Nigeria's Dangote Refinery Lands $4 Billion Financing Deal, with Afreximbank Shouldering $2.5 Billion of the Risk

The African Export-Import Bank has provided a significant financial boost to the Dangote Petroleum Refinery and Petrochemicals, underwriting $2.5 billion of a $4 billion senior syndicated term loan, with Access Bank also serving as a co-mandated lead arranger for the five-year facility.

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This type of financing arrangement, known as a syndicated loan, involves a large sum of money being provided by a group of lenders, and in this case, marks a major milestone for the Dangote Petroleum Refinery and Petrochemicals FZE, which boasts a capacity of 650,000 barrels per day.

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Afreximbank's involvement in the deal is a testament to its commitment to supporting key industrial projects, with the facility set to enhance the refinery's balance sheet flexibility, strengthen its financial position, and solidify its role as a strategic supplier of refined petroleum products to African and global markets.

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Since commencing operations in February 2024, the refinery has received significant support from Afreximbank, including a $1 billion working capital facility and guidance on the Naira-for-Crude initiative, which enables the purchase of crude oil and sale of refined products in local currency, reducing dependence on foreign exchange.

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According to George Elombi, President and Chairman of the Board of Directors of Afreximbank, the bank takes pride in being the largest financier of the Dangote Group, having invested around $15 billion in the group since 2015, driven by a desire to support African-led initiatives.

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Elombi emphasized that investing in African projects like the Dangote Refinery is crucial for building a secure and resilient future for the continent, creating jobs, wealth, and expanding government revenues, and that Afreximbank remains committed to supporting transformative indigenous industrial projects.

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The Dangote Refinery is seen as a symbol of African ambition and execution, strengthening Africa's energy security, reducing dependence on imports, and opening new frontiers for intra-African trade and industrial development, with Elombi highlighting its significance as a bold example of what can be achieved through African capital and expertise.

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The refinery has expressed gratitude for Afreximbank's continued support and confidence in its vision to build world-class industrial capacity serving Nigeria, Africa, and global markets, with the syndicated loan attracting strong interest from a consortium of African and international financial institutions.

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This sustained confidence in the refinery reflects its status as a transformative industrial asset and its role in Africa's broader industrialisation agenda, with the syndicated loan deal marking a significant milestone in the project's development and a testament to the refinery's potential for growth and development.