The African Export-Import Bank (Afreximbank) has formalized a significant financial commitment to Africa’s energy sector by underwriting $2.5 billion of a total $4billion senior syndicated term loan for the Dangote Petroleum Refinery and Petrochemicals Free Zone Enterprise.
This transaction, executed in collaboration with Access Bank as co-Mandated Lead Arranger, serves to consolidate existing financing and optimize the capital structure of the 650,000 barrels-per-day facility.
By providing the largest share of this five-year syndicated loan, Afreximbank aims to enhance the refinery’s financial flexibility as it scales operations to meet both continental and global demand for refined petroleum products.
During a strategic engagement in Cairo, Dr. George Elombi, President and Chairman of the Board of Directors of Afreximbank, affirmed that this investment is a cornerstone of the Bank’s mission to foster industrialization and import substitution across the continent.
He noted that the Bank’s cumulative investment in the Dangote Group has reached US$15 billion since 2015, reflecting a long-term institutional commitment to supporting indigenous African enterprises that build economic resilience.
Dr. Elombi emphasized that the refinery acts as a transformative asset for Africa’s energy security, reducing the historical reliance on external markets and strengthening the foundations of intra-African trade.
The partnership extends beyond traditional lending, as Afreximbank has previously facilitated a US$1 billion working capital facility and acted as a Financial Adviser on the Naira-for-Crude initiative.
This initiative has been instrumental in stabilizing the refinery’s operational costs by allowing for the purchase of crude oil and the sale of refined products in local currency, thereby mitigating foreign exchange volatility.
The successful syndication of this loan attracted significant interest from a broad consortium of African and international financial institutions, underscoring a shared confidence in the refinery’s viability and its role in the broader industrialization of the region.
Commenting, President and Chief Executive of Dangote Industries Limited, Aliko Dangote described the financing as a vital step toward securing the business for its next phase of expansion.
He expressed appreciation for the continued institutional support that enables the Group to build world-class industrial capacity within Nigeria and across the African continent.
As the refinery continues to ramp up production, the financial stability provided by this syndicated loan is expected to facilitate a more efficient supply chain and contribute significantly to the economic prosperity and self-sufficiency of the African trade landscape.