Dangote Gets $3.3bn Loan From 12 Banks To Build Refinery

Dangote Gets $3.3bn Loan From 12 Banks To Build Refinery
Aliko Dangote

AFRICANGLOBE – Nigeria’s diversified industrial giant, Dangote Industries, on Wednesday said it has secured a $3.3 billion “term loan facility” from 12 local and global lenders to build Nigeria’s largest Petroleum Oil Refinery & Petrochemical/Fertilizer Plants.

According to Dangote, the factories will create about 9,500 direct and 25,000 indirect posts.

These plants will cut the existing volumes of refined fuel that are imported by about half.

This will essentially bring to a halt the importation of fertilizer in Nigeria.

In total, the projects will cost $9 billion, comprising $3 billion equity and a $6billiion loan.

The $3.3 billion deal struck with the banks is the initial consignment of loans made available to Dangote. It is a “term loan facility” backed by a group of 12 local and global lenders.

According to a statement released to on Wednesday, the first loan facility was co-ordinated jointly by Standard Chartered and Nigeria’s Guaranty Trust Bank.

Standard Chartered was the global co-ordinator, and Nigeria’s Guaranty Trust Bank was the local co-ordinator.

The 2.8 million tonnes of urea that will be made at these factories will be directed into developing the Nigerian agriculture sector.

The petrochemical plant will make polypropylene which is a usual element of many plastic and fabric products.

Aliko Dangote, the president of Dangote Group, said these factories would showcase Africa as maker of refined oil products and fertiliser.

“As a result, several African nations will be less reliant on importing fuel and fertilizer from foreign markets, reducing the negative impact of negotiating terms within increasingly turbulent international markets,” Dangote said in a statement.

Bola Adesola, the CEO of Standard Chartered Nigeria, said Nigeria will gain from this project in that it will create the most-needed jobs and lift economic interests of Africa’s second biggest economy.

Additional partaking banks include Fidelity Bank, Access Bank, Ecobank Nigeria and Zenith Bank.

Others are Standard Bank of South Africa, UBA, First City Monument Bank, First Bank Nigeria, FirstRand Bank and Diamond Bank.