By Bassey Udo
African Export-Import Bank (Afreximbank) says it has underwritten $2.5billion out of a $4billion senior syndicated term loan for Dangote Petroleum Refinery and Petrochemicals FZE (DPRP).
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 Bank said in a statement on Tuesday that the transaction signifies a major milestone for the 650,000 barrels per day capacity refinery, reputed to be Africa’s largest refinery and petrochemical complex.
The loan facility, the Bank said, would enhance the refinery’s balance sheet flexibility, strengthen its financial position, and support its operations as a strategic supplier of refined petroleum products to Africa and the global market.
Afreximbank’s participation of $2.5 billion 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 $1billion working capital facility, apart from acting as Financial Adviser on the Naira-for-Crude initiative by the Nigerian government to facilitate the purchase of crude oil and sale of refined product in local currency, to eliminate the dependence on foreign currency.
Commenting on the development during a strategy engagement session between the Board of Directors of Afreximbank and the leadership of Dangote Group in Cairo, Egypt, the President and Chairman of the Board of Directors of Afreximbank, Dr. George Elombi, said the Bank takes 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 $15 billion in the Dangote Group since 2015.
Dr. Elombi said there was nothing more rewarding than investing in African enterprises, emphasising that empowering them was imperative for the continent’s self-sustainability.
“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,” he noted.
The latest transaction, he pointed out, makes a powerful statement about Afreximbank’s commitment to backing transformative and indigenous industrial projects that are reshaping Africa’s economic future.
He described the Dangote Refinery stands as a bold symbol of what African ambition, African capital and African execution can achieve at scale,adding that beyond expanding refining capacity, it was strengthening the foundations of Africa’s energy security, reducing dependence on imports and opening new frontiers for intra-African trade and industrial development.
“Afreximbank is proud to stand alongside this historic achievement and to continue supporting the continent’s journey towards greater self-sufficiency, resilience and prosperity,” Elombi said.
On his part, the President/Chief Executive, Dangote Industries Limited, Mr. Aliko Dangote, said the financing marks an important step in strengthening the financial foundation of the Refinery and positions the business for the next phase of its growth.
“We appreciate Afreximbank’s continued support and confidence in our vision to build world-class industrial capacity that serves Nigeria, Africa and global markets,” Dangote said.
The syndicated term loan attracted strong interest from a consortium of African and international financial institutions, reflecting continued confidence in the Dangote Petroleum Refinery as a transformative industrial asset and in Africa’s broader industrialisation agenda.
Afreximbank is a Pan-African multilateral financial institution mandated to finance and promote intra- and extra-African trade.
For over 30 years, the Bank has been deploying innovative structures to deliver financing solutions that support the transformation of the structure of Africa’s trade, accelerating industrialisation and intra-regional trade, thereby boosting economic expansion in Africa.
A stalwart supporter of the African Continental Free Trade Agreement (AfCFTA), Afreximbank has launched a Pan-African Payment and Settlement System (PAPSS) that was adopted by the African Union (AU) as the payment and settlement platform to underpin the implementation of the AfCFTA.
Working with the AfCFTA Secretariat and the AU, the Bank has set up a $10 billion Adjustment Fund to support countries effectively participating in the AfCFTA.
At the end of December 2024, Afreximbank’s total assets and contingencies stood at over $40.1 billion, and its shareholder funds amounted to $7.2 billion. Afreximbank has investment grade ratings assigned by China Chengxin International Credit Rating Co., Ltd (CCXI) (AAA), GCR (A), Japan Credit Rating Agency (JCR) (A-), and. Moody’s (Baa2).
Afreximbank, with headquarters in Cairo, Egypt, has evolved into a group entity comprising the Bank, its equity impact fund subsidiary called the Fund for Export Development Africa (FEDA), and its insurance management subsidiary, AfrexInsure.
Dangote Industries Limited is one of Africa’s leading diversified and fully integrated industrial conglomerates with vibrant operations in Nigeria and across Africa in several sectors including cement, sugar, salt, condiments, packaging, energy, port operations, automotive, fertiliser, petroleum refining and petrochemicals.
The core business focus of the Group, which started operations in 1978, is to provide local, value-added products and services that meet the ‘basic needs’ of the populace. Through the construction and operation of large-scale manufacturing facilities in Nigeria and across 10 other African countries. Dangote Group is focused on building local manufacturing capacity to generate employment, prevent capital flight and provide locally produced goods for the people.