Afreximbank Pledges $2.5bn for Dangote Refinery as Part of $4bn Financing Package

The African Export-Import Bank (Afreximbank) has officially committed $2.5 billion as part of a $4 billion syndicated loan aimed at enhancing the financial capabilities of the Dangote Petroleum Refinery and Petrochemicals. This funding is designed to bolster its operations and facilitate future growth initiatives.

This loan facility, structured over five years in collaboration with Access Bank, serves to streamline existing debts and improve the refinery’s overall capital framework.

The Dangote Refinery, distinguished as Africa’s largest petrochemical and refining complex with a staggering processing capacity of 650,000 barrels per day, is marking a significant achievement with this financing.

Afreximbank's input signifies the largest portion of the syndicate, highlighting its crucial role in channeling capital towards industrial ventures throughout the continent.

The bank emphasized that the agreement is in line with its mission to foster industrial development, lessen reliance on imported petroleum products, and enhance intra-African commerce.

Since its operational launch in February 2024, Afreximbank has previously backed the refinery with a $1 billion working capital facility and has provided advisory support, which includes contributions to the Naira-for-Crude initiative.

During recent remarks in Cairo, Afreximbank's President and Chairman, George Elombi, highlighted that the institution's ongoing support is a testament to its faith in African enterprises.

He revealed that the financial institution has funnelled approximately $15 billion into the Dangote Group since 2015, underscoring a deep and fruitful partnership.

Aliko Dangote, the President and Chief Executive of Dangote Industries Limited, characterized this financing as an essential move for fortifying the financial foundations of the refinery and setting the stage for future expansion.

He pointed out that this fund will aid in building top-tier industrial capabilities to meet the demands of Nigeria, the broader African region, and global markets.

Additionally, the syndicated loan has drawn interest from various African and international financial entities, reflecting a robust investor confidence in the refinery's potential to enhance energy security and propel industrial progress across the continent.