By: Tijani Salako.

The African Export-Import Bank (Afreximbank) has underwritten $2.5 billion in a $4 billion senior syndicated term loan for Dangote Petroleum Refinery and Petrochemicals FZE, reinforcing investor confidence in Africa’s largest refining and petrochemical complex.

This was disclosed in a statement that was issued on Tueday by the Afreximbank, President and Chairman of the Board of Directors, Afreximbank, Dr. George Elombi, joined by Afreximbank Board members and the Bank’s executive leadership during the signing ceremony in Cairo, Egypt.

The five-year facility, arranged in partnership with Access Bank as co-mandated lead arranger, is aimed at consolidating existing debt obligations, optimising the refinery’s capital structure, and aligning financing with its operational realities and long-term expansion plans.

The transaction represents a major financial milestone for the Dangote refinery, which boasts a refining capacity of 650,000 barrels per day, positioning it as the largest single-train refinery in the world and a critical asset in Africa’s energy landscape.

With the new funding, the refinery is expected to improve its balance sheet flexibility, strengthen its financial position, and enhance its ability to meet rising demand for refined petroleum products across Nigeria, Africa, and global export markets.

Afreximbank’s $2.5 billion commitment the largest share in the syndicate highlights the bank’s strategic role in mobilising capital for transformative industrial projects across the continent, particularly those with the potential to drive economic self-sufficiency.

The bank noted that the financing aligns with its broader mandate to support Africa’s industrialisation by promoting import substitution, boosting intra-African trade, and improving energy security through local refining capacity.

Since the commencement of refining operations in February 2024, Afreximbank has continued to deepen its support for the refinery, including the provision of a $1 billion working capital facility to sustain operations and ensure steady output.

Furthermore, the bank played an advisory role in the implementation of the Naira-for-crude initiative, a strategic arrangement designed to facilitate crude oil purchases and refined product sales in local currency, thereby reducing reliance on foreign exchange.

Speaking during strategy engagement session in Cairo, Egypt, President of Afreximbank, George Elombi, said the bank’s continued investment in the Dangote Group reflects its belief in African-led enterprises as drivers of economic transformation.

He disclosed that Afreximbank has invested about $15 billion in the Dangote Group since 2015, emphasising that supporting indigenous companies is critical to building a resilient and self-sustaining African economy.

On his part, President and Chief Executive of Dangote Industries Limited, Aliko Dangote, described the financing as a significant step in strengthening the refinery’s financial foundation and positioning it for its next growth phase.

The syndicated loan also attracted strong interest from a consortium of African and international financial institutions, underscoring growing global confidence in the Dangote refinery as a transformative industrial project and in Africa’s broader industrialisation agenda.