https://www.engineeringnews.co.za

Africa's richest man signs $650m Afreximbank loan for oil refinery

16th July 2018

By: Reuters

  

Font size: - +

Africa's richest man, Aliko Dangote, has signed a $650-million loan facility with the African Export-Import Bank (Afreximbank) for his oil refinery project in Nigeria.

The seven-year term loan would attract a moratorium of five years, according to facility terms read out during the signing.

Cairo-based Africa's trade bank also signed a $750-million facility with Nigeria's development bank, the Bank of Industry.

Reuters witnessed the signing of both loans on Saturday.

Dangote Group Executive Director Devakumar Edwin told Reuters last week that the oil refinery would cost around $10-billion and should be completed by December 2019.

He said the company would borrow $3.3-billion for the project, arranged by Standard Chartered Bank. The remainder will be funded by equity and through export agencies.

Dangote built his fortune on cement and now has interests in flour milling, agriculture and real estate. He is building the world's largest single oil refinery and also expanding into fertiliser, aiming to address long-standing problems in Nigeria's energy markets.

The refinery and petrochemical complex is located on 25 000 ha of swampy land with a jetty to ferry products by sea within Nigeria and abroad including an undersea pipeline to transport gas. It would account for half of Dangote's sprawling assets when it is finished next year.

Dangote intends to process different grades of crude to meet local demand for refined petroleum products and also target export markets abroad.

Afreximbank, celebrating its 25 years of operation this year, aims to foster intra-African trade through the creation of a payment platform to ease settlement and currency risks.

Edited by Reuters

Comments

Showroom

Immersive Technologies
Immersive Technologies

Immersive Technologies is the world's largest, proven and tested supplier of simulator training solutions to the global resources industry.

VISIT SHOWROOM 
ESAB showroom image
ESAB South Africa

ESAB South Arica, the leading supplier of high-end welding and cutting products to the Southern African industrial market is based in...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Magazine round up | 19 April 2024
Magazine round up | 19 April 2024
19th April 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.073 0.126s - 170pq - 2rq
Subscribe Now