Afreximbank Underwrites $2.5 Billion in Syndicated Loan for Dangote Refinery
The African Export-Import Bank (Afreximbank) has announced a significant financial commitment, underwriting $2.5 billion as part of a $4 billion senior syndicated term loan for Dangote Petroleum Refinery and Petrochemicals FZE (DPRP). This transaction, with Afreximbank and Access Bank serving as co-Mandated Lead Arrangers, is structured as a five-year facility aimed at consolidating existing financing, optimizing capital structure, and aligning with the refinery's operational status and long-term growth strategy.
A Major Milestone for Africa's Largest Refinery
This financing marks a pivotal moment for DPRP, which stands as Africa's largest refinery and petrochemical complex with a daily capacity of 650,000 barrels. The facility is designed to enhance balance sheet flexibility, strengthen the company's financial position, and support its role as a strategic supplier of refined petroleum products to both African and global markets. Afreximbank's $2.5 billion participation represents the largest share in the syndicate, highlighting the bank's leadership in mobilizing capital to drive Africa's industrialization, advance import substitution, promote intra-African trade in refined products, and bolster energy security.
Historical Support and Strategic Initiatives
Since the refinery commenced operations in February 2024, Afreximbank has been a key partner, providing a $1 billion working capital facility and acting as a financial adviser for the Naira-for-Crude initiative. This initiative facilitates the purchase of crude oil and sale of refined products in local currency, reducing dependence on foreign exchange and enhancing economic resilience.
Leadership Perspectives on the Partnership
During a strategy engagement session in Cairo, Egypt, Dr. George Elombi, President and Chairman of the Board of Directors of Afreximbank, expressed pride in being the largest financier to the Dangote Group. He emphasized that investing in African enterprises like Dangote is crucial for creating jobs, building wealth, expanding government revenues, and securing a resilient future for the continent. Elombi noted that Afreximbank has invested approximately $15 billion in the Dangote Group since 2015, underscoring a long-term commitment to empowering homegrown businesses that can transform Africa's economic landscape.
Elombi further stated that this partnership reflects a broader strategy to strengthen African institutions, reduce reliance on external support during crises, and achieve sustainable growth. He described the Dangote refinery as a landmark achievement that showcases the potential of African ambition, capital, and execution, pivotal for enhancing energy security, cutting import dependence, and unlocking new trade and industrialization opportunities across the continent.
Dangote Group's Vision and Gratitude
In response, Aliko Dangote, President and Chief Executive of Dangote Industries Limited, described the financing as a critical step in reinforcing the refinery's financial foundation and positioning it for future growth phases. He expressed appreciation for Afreximbank's continued confidence in the group's vision to develop world-class industrial capacity that serves Nigeria, Africa, and global markets, highlighting the collaborative effort to drive economic prosperity and self-sufficiency.
