Jul 24, 2018
Aliko Dangote has arranged more than $4.5 billion in debt financing for his Nigerian oil refinery project and aims to start production in early 2020. Dangote is building the world’s largest single oil refinery with capacity of 650,000 barrels per day (bpd) to help to reduce Nigeria’s dependence on imported petroleum.
Lenders would commit about $3.15 billion, with the World Bank’s private sector arm providing $150 million, Dangote said, adding that he was investing more than 60% from his own cash flow. Dangote Group has said that Standard Chartered Bank was arranging funds for the project. “We will end up spending between $12 billion to $14 billion. The funding is going to come through equity, commercial bank loans, export credit agencies and developmental banks,” Dangote said in an interview.
Nigeria’s central bank would provide guarantees for about 575 billion naira in local currency for 10 years, with African Development Bank providing a $300 million loan. Trade banks from China, India and some European countries are also in the mix, Dangote said. Last week Dangote signed a loan of $650 million with the African Export-Import Bank (Afreximbank) for the project.