Afreximbank underwrites $2.5bn loan to strengthen Dangote Refinery

The African Export-Import Bank (Afreximbank) has underwritten $2.5 billion of a $4 billion senior syndicated term loan for Dangote Petroleum Refinery and Petrochemicals, in a move aimed at strengthening the refinery’s financial structure and supporting its long-term expansion.

In a statement released on Tuesday, the bank said it acted as co-Mandated Lead Arranger alongside Access Bank for the five-year financing facility.

According to Afreximbank, the loan will be used to consolidate existing debts, optimise the refinery’s capital structure, and align financing with its current operational status and future growth plans.

The bank described the transaction as a major milestone for the Dangote Refinery, which has a refining capacity of 650,000 barrels per day and is widely regarded as Africa’s largest refinery and petrochemical complex.

“African Export-Import Bank (Afreximbank) is pleased to announce that it has underwritten US$2.5bn in the US$4bn senior syndicated term loan in favour of Dangote Petroleum Refinery and Petrochemicals FZE,” the statement said.

It added that Afreximbank’s $2.5 billion contribution represents the largest share in the loan syndicate, underscoring the bank’s leading role in mobilising capital to support industrial development across the continent.

The financing is expected to enhance the refinery’s balance sheet flexibility, strengthen its financial position and support its role as a strategic supplier of refined petroleum products to markets across Africa and beyond.

Afreximbank noted that the transaction aligns with its broader mandate to promote import substitution, expand intra-African trade and strengthen energy security on the continent.

The bank also revealed that since the refinery commenced operations in February 2024, it has provided significant support to the project, including a $1 billion working capital facility and advisory services for the Naira-for-Crude initiative, which enables the purchase of crude oil and sale of refined products in local currency.

Providing further insight, President and Chairman of the Board of Directors of Afreximbank, George Elombi, said the bank’s continued investment reflects its confidence in African-led industrial projects.

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

He disclosed that Afreximbank has invested about $15 billion in the Dangote Group since 2015, stressing that supporting indigenous enterprises is critical to Africa’s economic resilience and long-term development.

According to him, the Dangote Refinery represents a landmark industrial project capable of strengthening Africa’s energy security, reducing reliance on imported petroleum products and expanding opportunities for intra-African trade.

Reacting to the development, President and Chief Executive Officer of Dangote Industries Limited, Aliko Dangote, said the facility would position the refinery for the next phase of its growth.

“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.

Dangote expressed appreciation to Afreximbank for its continued support and confidence in the company’s vision to build world-class industrial capacity serving Nigeria, Africa and global markets.

The bank also disclosed that the $4 billion syndicated facility attracted strong interest from a consortium of African and international financial institutions, reflecting sustained investor confidence in the refinery project.

The $20 billion Dangote Refinery, which began operations in February 2024, is widely expected to transform Nigeria’s downstream oil sector by significantly reducing the country’s reliance on imported petroleum products and strengthening regional energy supply.