Afreximbank leads $4bn refinancing loan for Dangote refinery

The African Export-Import Bank (Afreximbank) has finalized a $1.35 billion financing facility in favour of Dangote Industries Limited (DIL), marking a significant milestone in African syndicated finance.

According to a statement from the continental financial institution, the facility is part of a broader $4 billion syndicated financing arrangement designed to support Dangote Industries. Afreximbank played a leading role in the deal, serving as the Mandated Lead Arranger for the syndication.

This transaction ranks as one of the largest syndicated loans in recent African financial markets and is set to refinance capital previously invested in the development of the Dangote Petroleum Refinery and Petrochemicals Complex. Recognised as the largest single-train refinery in the world, the facility boasts a production capacity of 650,000 barrels per day.

The refinancing not only alleviates the refinery’s initial operational expenditures but also fortifies DIL’s balance sheet, enabling it to sustain its growth momentum and reinforce its strategic industrial position.

Afreximbank’s $1.35 billion contribution represents the largest share among all participating institutions, underscoring the bank’s commitment to large-scale infrastructure projects that advance Africa’s industrialisation, energy security, and intra-African trade.

Commenting on the landmark agreement, Professor Benedict Oramah, President and Chairman of the Board of Directors at Afreximbank, stated:

“With this landmark deal, we once again demonstrate that Africa’s development can only be meaningfully financed from within. It is only when African institutions lead the way that others can follow. The journey to utilise African resources for its own economic transformation is well underway.

Through the bank’s funding support, we are enhancing the capacity of the Dangote Refinery and Petrochemical Industries Ltd to produce and supply high-quality refined petroleum products to the Nigerian market, as well as for export to the entire continent and the world. Our energy security is in sight.”

Aliko Dangote, President and Chief Executive of Dangote Industries Limited, also emphasized the strategic impact of the facility, saying:

“Afreximbank’s contribution to this milestone financing underscores our shared vision to industrialise Africa from within. This refinancing strengthens our balance sheet and accelerates with ease the refinery’s supply of high-quality refined petroleum products across Africa.”

Since the start of operations at the refinery in February 2024, Afreximbank has remained a pivotal supporter of the Dangote Refinery, providing crude supply financing and product offtake solutions. These measures have helped ensure uninterrupted operations, reinforcing the refinery’s position as a key player in Africa’s refining landscape.

The syndicated facility attracted robust interest from top-tier African and global financial institutions, a strong vote of confidence in Africa’s industrial potential and in Dangote Industries’ transformative vision.