The African Export-Import Bank (Afreximbank) has signed a $1.35 billion financing agreement to support the refinancing of debt incurred during the construction of the Dangote Refinery.
The deal is part of a $4 billion loan package for Dangote Industries Limited.
In a statement released by the bank, the financing will be used to repay outstanding costs linked to the development of the Dangote Petroleum Refinery and Petrochemicals complex, Africa’s largest single-train refinery, with a capacity of 650,000 barrels per day.
Speaking on agreement, Professor Benedict Oramah, president and chairman of Afreximbank, said:
“With this landmark deal, we once again demonstrate that Africa’s development can only be meaningfully financed from within. It is only when African institutions lead the way that others can follow. The journey to utilise African resources for its own economic transformation is well underway.
“Through the Bank’s funding support, we are enhancing the capacity of the Dangote Refinery and Petrochemical Industries Ltd to produce and supply high-quality refined petroleum products to the Nigerian market, as well as for export to the entire continent and the world. Our energy security is in sight.”
Aliko Dangote, president and CEO, Dangote Industries Limited, described the financing as a significant milestone that will strengthen the company’s balance sheet, propel Africa’s growth, and boost the refinery’s supply of high-quality refined products.
Dangote Group approached lenders to refinance part of its construction debt, aiming to ease repayment pressure and improve cash liquidity. Afreximbank is leading the $4 billion loan arrangement in collaboration with a syndicate of other banks and financial institutions.
