Afreximbank Backs Dangote Refinery Expansion With $2.5bn Loan

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

The five-year facility, arranged with Access Bank as co-mandated lead arranger alongside Afreximbank, is designed to consolidate existing obligations, optimise the refinery’s balance sheet, and align its financing framework with ongoing operations and future growth plans.

Afreximbank’s $2.5bn commitment represents the largest share of the syndication, underscoring its pivotal role in mobilising capital for large-scale industrial projects across Africa.

The transaction is also seen as a vote of confidence in the refinery’s commercial viability and its strategic importance to regional energy markets.

The Dangote Refinery, a flagship asset of Dangote Group, is Africa’s largest refinery and petrochemical complex, with a processing capacity of 650,000 barrels per day.

The new facility is expected to enhance financial flexibility, reinforce the company’s credit profile, and support its position as a major supplier of refined petroleum products to both African and global markets.

Afreximbank has played a sustained role in supporting the project since the commencement of operations in February 2024, including providing a $1bn working capital facility.

The bank has also been involved in advisory support for Nigeria’s Naira-for-Crude initiative, which facilitates crude oil transactions and refined product sales in local currency, reducing reliance on foreign exchange.

Speaking during a strategy engagement session in Cairo, Egypt, between the bank’s Board of Directors and Dangote Group leadership, Afreximbank President and Board Chairman George Elombi described the institution’s continued support as part of a broader commitment to African-led industrial development.

He noted that Afreximbank has invested approximately $15bn in the Dangote Group since 2015, emphasizing that backing indigenous enterprises is critical to strengthening Africa’s economic resilience and reducing dependence on external financing sources.

Dangote Industries Limited President and Chief Executive Officer Aliko Dangote said the financing represents a significant milestone for the refinery, strengthening its financial base and positioning the business for its next phase of growth.

He expressed appreciation for Afreximbank’s continued confidence in the project and its long-term vision.
The syndicated loan attracted strong participation from a consortium of African and international financial institutions, reflecting sustained investor confidence in the Dangote Refinery as a transformative industrial asset.

It also highlights growing momentum behind Africa’s broader industrialisation agenda and efforts to deepen intra-continental trade in energy products.

Beyond its financial implications, the transaction is expected to bolster energy security across the continent, reduce import dependence, and support the development of local refining capacity, marking another step in Africa’s drive toward greater economic self-sufficiency.