- African Export-Import Bank played a leading role in securing a $4bn syndicated loan for the Dangote Petroleum Refinery and Petrochemicals, underwriting $2.5bn
- The primary objective of the loan is to refinance and consolidate existing debts in order to improve the refinery’s capital structure
- Aliko Dangote noted that the funding will reinforce the refinery’s financial base and position it for its next phase of growth
African Export-Import Bank has taken the lead in a major $4bn financing deal for Dangote Petroleum Refinery and Petrochemicals, underwriting $2.5 billion of the senior syndicated term loan aimed at strengthening the refinery’s financial structure and supporting its expansion.
In a statement released on Tuesday, March 31, the bank disclosed that it acted as a co-Mandated Lead Arranger alongside Access Bank for the five-year facility.
The loan is designed to consolidate existing debt, optimise the refinery’s capital framework, and align its financing with its current operational phase.
Described as a landmark transaction, the deal reinforces the refinery’s position as Africa’s largest, boasting a capacity of 650,000 barrels per day.
Afreximbank’s $2.5bn commitment represents the biggest share in the syndicate, highlighting its leading role in financing industrial growth across the continent.
The bank stated, “African Export-Import Bank (Afreximbank) is pleased to announce that it has underwritten $2.5bn in the $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.”
The financing aligns with Afreximbank’s broader mission to boost intra-African trade, promote import substitution, and enhance energy security across the continent.
“Afreximbank’s participation of $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.
“Since the commencement of refining operations in February 2024, Afreximbank has supported the refinery with a $1bn working capital facility, as well as acting as Financial Adviser on the Naira-for-Crude initiative, which is facilitating the purchase of crude oil and sale of refined products in local currency, eliminating the dependence on foreign currency,” the statement added.
Providing further insight, Afreximbank President George Elombi emphasised the bank’s confidence in African-led industrial ventures.
“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. This is why we are pleased to have invested about $15bn in the Dangote Group since 2015.
“Afreximbank and its Board of Directors stand ready to support the realisation of Dangote Group’s aspirations because, when we build our institutions and provide the requisite support to grow, we will no longer have to look elsewhere for benevolence or salvation in difficult times.”
The deal underscores Afreximbank’s commitment to backing transformative African projects, with the Dangote refinery widely seen as a symbol of the continent’s industrial ambition.
Reacting, President and CEO of Dangote Industries Limited, Aliko Dangote, said the funding would drive the refinery’s next phase of growth.
“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,” he said.
“We appreciate Afreximbank’s continued support and confidence in our vision to build world-class industrial capacity that serves Nigeria, Africa, and global markets.”
The $20bn refinery, which began operations in February 2024, is expected to significantly reduce Nigeria’s dependence on imported petroleum products.
The new loan has also attracted strong interest from both African and international financial institutions, signalling sustained investor confidence in the project.