Afreximbank underwrites $2.5bn loan for Dangote Refinery

The African Export-Import Bank (Afreximbank) has taken a leading role in financing Africa’s largest industrial project by underwriting US$2.5 billion of a US$4 billion senior syndicated term loan for Dangote Petroleum Refinery and Petrochemicals FZE (DPRP).

Afreximbank and Access Bank were appointed as co-Mandated Lead Arrangers for the five-year facility. The loan aims to consolidate existing financing, optimise the refinery’s capital structure, and better align it with its current operational status and long-term expansion plans.

The 650,000-barrels-per-day Dangote Refinery, Africa’s biggest refining and petrochemical complex, stands to gain enhanced balance sheet flexibility and a stronger financial position. This will enable it to continue serving as a strategic supplier of refined petroleum products across Africa and global markets.

Afreximbank’s US$2.5 billion commitment represents the largest single share in the syndicate. The bank described the participation as a clear demonstration of its leadership in mobilising capital to drive Africa’s industrialisation, promote import substitution, boost intra-African trade in refined products, and strengthen continental energy security.

Since the refinery began operations in February 2024, Afreximbank has provided consistent support, including a US$1 billion working capital facility and acting as Financial Adviser on the Naira-for-Crude initiative. The programme facilitates crude oil purchases and refined product sales in local currency, reducing reliance on foreign exchange.

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Announcing the deal during a high-level strategy engagement session in Cairo between the Afreximbank Board of Directors and Dangote Group leadership, Dr. George Elombi, President and Chairman of the Board of Afreximbank, expressed great pride in the partnership.

“We take immense pride in being the single largest provider of financing to the Dangote Group. We do so primarily because Dangote is African,” Dr. Elombi said. “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.”

He revealed that Afreximbank has invested approximately US$15 billion in the Dangote Group since 2015, adding that empowering African enterprises is essential 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,” Dr. Elombi added.

Mr. Aliko Dangote, President and Chief Executive of Dangote Industries Limited, welcomed the facility as a critical step forward.

“This financing marks an important step in strengthening the financial foundation of Dangote Petroleum Refinery & Petrochemicals and positions the business for the next phase of its growth,” he said. “We appreciate Afreximbank’s continued support and confidence in our vision to build world-class industrial capacity that serves Nigeria, Africa and global markets.”

The syndicated loan drew strong interest from a broad consortium of African and international financial institutions, signalling continued market confidence in the Dangote Refinery as a transformative asset and in Africa’s wider industrialisation agenda.