Dangote arranges $4.5 bln for Nigeria refinery

Aliko Dangote has arranged USD 4.5 billion in debt financing to construct his oil refinery in Nigeria, international media reported Tuesday.

“We will end up spending between USD 12 billion to USD 14 billion. The funding is going to come through equity, commercial bank loans, export credit agencies and developmental banks,” Dangote told Reuters. He added that he would provide about 60% of the financing, with USD 3.15 billion coming from lenders. The African Development Bank is providing USD 300 million, and the International Finance Corporation is contributing USD 150 million.

Earlier in the month, Dangote received a USD 650-million loan from the African Export-Import Bank for the refinery project. The loan has a term of seven years with a moratorium period of five years.

Production at the 650,000-bpd facility is expected to begin in early 2020, with completion scheduled for December 2019, according to Dangote Group executive director Devakumar Edwin. Dangote reiterated that timeline Tuesday.