Dangote Refinery Secures Fresh $2.5bn Loan From Afreximbank
- A big boost for the Dangote Petroleum Refinery has secured $2.5bn from Afreximbank
- The facility is part of a financing arrangement aimed at strengthening the refinery’s balance sheet
- The refinancing is intended to cover capital previously expended on the construction of the refinery
Legit.ng journalist Dave Ibemere has experience in business journalism, with in-depth knowledge of the Nigerian economy, the stock market, and broader market trends.
The African Export-Import Bank (Afreximbank) has announced it has underwritten $2.5bn out of a $4bn senior syndicated term loan in favour of Dangote Petroleum Refinery and Petrochemicals.
The arrangement is designed to strengthen the refinery’s balance sheet, optimise its capital structure, and support its long-term expansion for the good of Africa.
Source: Getty Images
Afreximbank gives boost to Dangote refinery
Afreximbank in a statement issued on Tuesday, March 31 said it acted as co-Mandated Lead Arranger alongside Access Bank Plc for the five-year facility.
The bank described the transaction as an important development for the Dangote Refinery, which has a refining capacity of 650,000 barrels per day and is widely regarded as Africa’s largest refinery and petrochemical complex.
Afreximbank noted that its $2.5bn contribution represents the largest share in the syndicate.
The statement read:
“African Export-Import Bank (Afreximbank) is pleased to announce that it has underwritten US$2.5bn in the US$4bn senior syndicated term loan in favour of Dangote Petroleum Refinery and Petrochemicals FZE.
“Afreximbank and Access Bank were appointed co-Mandated Lead Arrangers for the five-year facility to consolidate existing financing, optimise its capital structure and align with the refinery’s operational status and long-term growth plan.
“The transaction marks a major milestone for DPRP, Africa’s largest refinery and petrochemical complex with a capacity of 650,000 barrels per day.
“The facility will enhance balance sheet flexibility, strengthen the company’s financial position, and support the refinery as a strategic supplier of refined petroleum products to Africa and the global market.”
Source: Twitter
Afreximbank, Dangote excited about the financing
The bank noted that the financing aligns with its mandate to promote import substitution, boost intra-African trade, and strengthen energy security across the continent.
The statement added.
“Afreximbank’s participation of US$2.5bn is the largest share in the syndicate and underscores the Bank’s leadership in mobilising capital to support Africa’s industrialisation, advancing import substitution, promoting intra-African trade in refined petroleum products, and strengthening energy security."
Providing further insight, Afreximbank President and Chairman of the Board of Directors, George Elombi, said the bank’s continued investment in the Dangote Group reflects confidence in African-led industrial projects.
Elombi stated:
“We take immense pride in being the single largest provider of financing to the Dangote Group. We do so primarily because Dangote is African. When we invest in ourselves, we do more than create jobs and wealth or expand government revenues; we build a secure and resilient future for our continent.”
Reacting, the President and Chief Executive Officer of Dangote Industries Limited, Aliko Dangote, said the facility would support the refinery’s next phase of growth and strengthen its financial foundation.
He said:
“This financing marks an important step in strengthening the financial foundation of Dangote Petroleum Refinery & Petrochemicals and positions the business for the next phase of its growth."
Dangote refinery clarifies reports on initial public offering
Earlier, Legit.ng reported that Dangote Petroleum Refinery and Petrochemicals (DPRP) has dismissed recent media reports and online speculation suggesting that the company is planning an Initial Public Offering (IPO).
In a statement released on Thursday, March 26, the company described the circulating information as unauthorised and unverified.
It further cautioned that “several online platforms and unofficial sources have published unverified.
Source: Legit.ng
