Dangote Refinery secures $4bn syndicated loan, Afreximbank underwrites $2.5bn

The African Export-Import Bank has underwritten $2.5 billion of a $4 billion senior syndicated term loan for the Dangote Petroleum Refinery and Petrochemicals.

A syndicated loan is a financing arrangement involving a large sum of money provided by a group of lenders.

In a statement confirming the deal, Afreximbank disclosed that it and Access Bank have been appointed as co-mandated lead arrangers for the five-year facility.

The bank stated: “Afreximbank is pleased to announce that it has underwritten $2.5 billion in the $4 billion senior syndicated term loan in favour of Dangote Petroleum Refinery and Petrochemicals FZE (DPRP).

“The transaction marks a major milestone for DPRP, Africa’s largest refinery and petrochemical complex, with a capacity of 650,000 barrels per day.”

According to the bank, the facility will enhance DPRP’s balance sheet flexibility, strengthen its financial position, and support its role as a strategic supplier of refined petroleum products to African and global markets.

Afreximbank further noted that since the refinery commenced operations in February 2024, it has supported the project with a $1 billion working capital facility and served as financial adviser on the Naira-for-Crude initiative. The initiative facilitates the purchase of crude oil and the sale of refined products in local currency, thereby reducing dependence on foreign exchange.

Commenting on the development, George Elombi, President and Chairman of the Board of Directors of Afreximbank, said the bank takes pride in being the largest financier of the Dangote Group.

“We do so primarily because Dangote is African. When we invest in ourselves, we do more than create jobs, 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 $15 billion in the Dangote Group since 2015,” he said.

He added that Afreximbank remains committed to supporting transformative indigenous industrial projects.

The Dangote Refinery stands as a bold symbol of what African ambition, African capital, and African execution can achieve at scale. Beyond expanding refining capacity, it strengthens Africa’s energy security, reduces dependence on imports, and opens new frontiers for intra-African trade and industrial development,” he said.

The refinery also expressed appreciation for the bank’s continued support and confidence in its vision to build world-class industrial capacity serving Nigeria, Africa, and global markets.

The statement added that the syndicated loan attracted strong interest from a consortium of African and international financial institutions, reflecting sustained confidence in the refinery as a transformative industrial asset and in Africa’s broader industrialisation agenda.

Culled from vanguard