The African Export-Import Bank has underwritten $2.5 billion of a $4 billion syndicated term loan for Dangote Petroleum Refinery and Petrochemicals, marking one of the largest financing commitments in Africa’s industrial sector.
The five-year facility, arranged jointly with Access Bank, is aimed at consolidating existing debt, optimising the refinery’s capital structure, and supporting its operational growth. The deal attracted strong participation from both African and international financial institutions, reflecting confidence in the refinery’s long-term potential.
The Dangote Refinery, with a capacity of 650,000 barrels per day, is the largest petrochemical complex in Africa. Since beginning operations in February 2024, it has been positioned as a key supplier of refined petroleum products to regional and global markets.
Afreximbank’s contribution represents the largest share of the syndicated loan. The bank noted that the financing will enhance the refinery’s financial flexibility, strengthen its balance sheet, and support its long-term expansion strategy.
Speaking during a strategy session in Cairo, Afreximbank President George Elombi said the bank’s continued support for the Dangote Group aligns with its broader mission of investing in African enterprises. He revealed that Afreximbank has committed approximately $15 billion to the group since 2015, emphasising the importance of strengthening indigenous capacity to drive economic resilience.
He described the transaction as a demonstration of the bank’s commitment to financing transformative projects that advance Africa’s industrialisation and reduce reliance on external support.
President and Chief Executive of Dangote Industries, Aliko Dangote, welcomed the development, stating that the facility reinforces the refinery’s financial position and prepares it for its next phase of growth. He expressed appreciation for Afreximbank’s continued backing of the group’s vision to build world-class industrial capacity.
Beyond financing, the facility is expected to enhance energy security across Africa by reducing dependence on imported petroleum products, promoting intra-African trade, and supporting local currency transactions. Afreximbank has previously provided a $1 billion working capital facility for the refinery and served as financial adviser on initiatives aimed at reducing foreign exchange pressures.
The transaction forms part of a broader push to accelerate industrialisation across the continent, with Afreximbank reaffirming its commitment to supporting large-scale African-led projects that drive self-sufficiency, economic resilience, and sustainable growth.
Source: thebftonline.com
