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, aiming to strengthen the refinery’s financial footing and fuel its long-term growth. Acting alongside Access Bank as co-Mandated Lead Arrangers, Afreximbank’s participation underscores its pivotal role in mobilizing capital for Africa’s industrial expansion. The five-year facility is designed to consolidate existing debt, optimize the refinery’s capital structure, and align financing with operational realities.
With a refining capacity of 650,000 barrels per day, the Dangote refinery is Africa’s largest refinery and petrochemical complex. Afreximbank described its $2.5 billion contribution as the largest share in the syndicate, highlighting its leadership in driving Africa’s industrialization and energy security. The loan will enhance the refinery’s balance sheet flexibility, support the supply of refined petroleum products across Africa and globally, and reinforce its strategic role in the continent’s energy ecosystem.
Since commencing operations in February 2024, the refinery has already benefited from Afreximbank’s support, including a $1 billion working capital facility and advisory services on the Naira-for-Crude initiative, which enables transactions in local currency. Afreximbank’s President and Board Chairman, George Elombi, emphasized that investing in African-led industrial projects like Dangote’s refinery is vital for creating jobs, building wealth, and ensuring a resilient economic future for the continent.
Aliko Dangote, President and CEO of Dangote Industries Limited, welcomed the funding, noting that it positions the refinery for its next phase of growth and reinforces confidence in its operational and strategic plans. The $4 billion syndicated loan drew interest from a consortium of African and international financial institutions, reflecting sustained investor faith in the refinery’s transformative potential and Africa’s broader industrial ambitions.
The Dangote refinery has been hailed as a game-changer in Nigeria’s downstream oil sector, reducing dependence on imported petroleum products and strengthening intra-African trade. Afreximbank’s support of this landmark project exemplifies its commitment to empowering African enterprises, advancing energy security, and driving sustainable industrial development across the continent. As Africa builds capacity from within, the refinery stands as a bold symbol of African ambition, execution, and economic self-sufficiency.
source: punch