The African Export-Import Bank (Afreximbank) has announced a landmark $1.35 billion financing facility for Dangote Industries Limited (DIL), Africa’s foremost industrial conglomerate.
According to a statement from the bank on Monday the facility forms part of an expansive $4 billion syndicated financing arrangement with Afreximbank, acting as the Mandated Lead Arranger, spearheaded the deal, which is set to refinance capital investments in the Dangote Petroleum Refinery and Petrochemicals Complex, the world’s largest single-train refinery with a daily capacity of 650,000 barrels.
The financing deal, which drew significant participation from both African and international financial institutions, with Afreximbank’s $1.35 billion contribution representing the largest share among participating banks.
Meanwhile, the funds will refinance capital expended on constructing the Dangote Petroleum Refinery and Petrochemicals Complex, located in Nigeria’s Lekki Free Zone.
The Dangote Refinery, with its unparalleled 650,000-barrel-per-day capacity, is a transformative project aimed at reducing Africa’s reliance on imported refined petroleum products, the facility also includes a petrochemical complex, further diversifying DIL’s contributions to Africa’s industrial landscape.
Professor Benedict Oramah, President and Chairman of the Board of Directors at Afreximbank, hailed the deal as a milestone in Africa’s development journey. “With this landmark deal, we once again demonstrate that Africa’s development can only be meaningfully financed from within,” Oramah said. “It is only when African institutions lead the way that others can follow.”
Aliko Dangote, President and Chief Executive of Dangote Industries Limited, emphasized the significance of Afreximbank’s partnership in achieving the conglomerate’s vision. “Afreximbank’s contribution to this milestone financing underscores our shared vision to industrialize Africa from within,” Dangote said. “This refinancing strengthens our balance sheet and accelerates with ease the refinery’s supply of high-quality refined petroleum products across Africa.”
