Afreximbank Underwrites $2.5B Loan for Dangote Refinery

The African Export-Import Bank (Afreximbank) has underwritten US$2.5 billion of a US$4 billion senior syndicated term loan for Dangote Petroleum Refinery and Petrochemicals FZE. The financing arrangement supports Africa’s largest refining and petrochemical complex, which operates at a capacity of 650,000 barrels per day.

Appointed as co-mandated lead arranger alongside Access Bank, Afreximbank structured the five-year facility to consolidate existing debt, optimize the refinery’s capital structure, and align funding with its current operational status and long-term development plans. The bank’s US$2.5 billion allocation constitutes the largest share within the lending syndicate.

The Dangote refinery commenced commercial operations in February 2024. Since that time, Afreximbank has extended a US$1 billion working capital facility and acted as financial adviser on the Naira-for-Crude initiative. That program facilitates crude oil procurement and refined product sales in local currency, reducing reliance on foreign exchange markets. The new term loan is designed to improve balance sheet flexibility and reinforce the company’s financial position as it scales production.

Dr. George Elombi, President and Chairman of Afreximbank’s Board of Directors, stated that the institution has deployed approximately US$15 billion in financing to the Dangote Group since 2015. He emphasized the bank’s mandate to fund indigenous industrial projects that advance import substitution, strengthen regional energy security, and promote intra-African trade in refined petroleum products. Aliko Dangote, Chief Executive of Dangote Industries Limited, noted that the transaction provides a stable financial foundation for the refinery’s next phase of expansion and supports its role in supplying domestic and international markets.

The syndicated loan attracted commitments from a consortium of African and international financial institutions, indicating continued market confidence in the facility’s commercial viability and its alignment with broader industrialization objectives across the continent. The proceeds will be directed toward operational scaling and debt restructuring, positioning the refinery to meet growing regional demand for refined fuels and petrochemicals.