Afreximbank leads US$1.35bn facility in US$4bn syndication to strengthen Dangote’s refinery operations and growth

The African Export-Import Bank (Afreximbank) has announced the signing of a US$1.35bn financing facility for Dangote Industries Limited (DIL)

This forms part of a larger approximately US$4bn syndicated financing arrangement for DIL, Africa’s largest industrial conglomerate, with Afreximbank acting as the Mandated Lead Arranger for the syndication.

This transaction — one of the largest syndicated loans in recent African financial markets — will be used to refinance capital invested in the construction of the Dangote Petroleum Refinery and Petrochemicals Complex, the world’s largest single-train refinery with a capacity of 650,000 barrels per day. The financing will reduce initial operational expenditures, strengthen DIL’s balance sheet, and support its ongoing growth.

Afreximbank’s contribution of US$1.35bn, the largest share among participating banks, highlights its commitment to major infrastructure projects that drive Africa’s industrialisation, energy security, and intra-African trade.

Since the refinery complex commenced operations in February 2024, Afreximbank has continued to provide financial support for crude supply and product offtake, ensuring smooth operations and reinforcing its role in Africa’s most significant refining project.

Commenting on the deal, Benedict Oramah, president & chairman of the board of directors at Afreximbank, said, “With this landmark deal, we once again demonstrate that Africa’s development can only be meaningfully financed from within. It is only when African institutions lead the way that others can follow. The journey to utilise African resources for its own economic transformation is well underway. Through the Bank’s funding support, we are enhancing the capacity of the Dangote Refinery and Petrochemical Industries Ltd to produce and supply high quality refined petroleum products to the Nigerian market, as well as for export to the entire continent and the world. Our energy security is in sight.”

Aliko Dangote, CEO, Dangote Industries Limited, added, “Afreximbank’s contribution to this milestone financing underscores our shared vision to industrialise Africa from within. This refinancing strengthens our balance sheet and accelerates with ease the refinery’s suppy of high-quality refined petroleum products across Africa.”

The syndicated facility attracted strong interest from major African and international financial institutions, reflecting confidence in Africa’s industrial growth and in Dangote’s vision for transforming the continent.

South Africa has entered into a US$1.5bn loan agreement with the World Bank to support the revitalisation of its transport and energy infrastructure and stimulate economic recovery, the National Treasury announced recently

For over ten years, Africa’s most industrialised economy has faced stagnation, hindered by ongoing power outages that have reduced productivity and deteriorating rail systems and port congestion that have impacted key industries like mining and automotive manufacturing.

The government expects the loan to help alleviate transport constraints and bolster energy security, although it has not disclosed which specific projects the World Bank funds will support.

The loan is expected to help manage the country’s rising debt-service burden by offering more favourable conditions than those available in commercial markets, including a three-year grace period.

State-run utilities Eskom and Transnet, responsible for energy and transport respectively, have faced long-standing operational and financial difficulties, contributing to the country’s sluggish growth, which stood at only 0.1% in the first quarter.

The Treasury stated that the interest rate on the 16-year loan from the World Bank is the six-month Secured Overnight Financing Rate plus 1.49%.

This facility is distinct from another US$500mn in funding that the World Bank Group is considering to help mobilise private investment in South Africa’s electricity transmission infrastructure, which needs to be expanded to accommodate more renewable energy projects.

Last month, Finance Minister Enoch Godongwana outlined a budget that includes over 1 trillion rand (US$55.5bn) in investment across sectors including transport, energy, water and sanitation, aimed at driving growth and improving public services.

It aimed for public debt to peak at 77.4% of gross domestic product in the current fiscal year, slowly declining after that.

Building more sustainable housing in South Africa

In a boost for South Africa’s construction sector, Nedbank Corporate and Investment Banking (CIB) is to accelerate its funding for affordable homes after securing a US$200mn loan from IFC, the World Bank’s private finance arm

IFC will provide Nedbank CIB with a senior loan of US$200mn to further scale lending to what it called ‘green buildings developers’ in South Africa’s residential, commercial, industrial and retail property sectors.

The partnership will help bridge the country’s housing deficit and support the transition to a lower-carbon economy, IFC noted in a statement.

Each building will be certified through IFC’s Excellence in Design for Greener Efficiencies (EDGE) or equivalent standard for energy and water efficiency and for the use of more sustainable construction materials.

At least half of all funds allocated to new residential developments will target the affordable housing segment.

IFC was also an investor in Nedbank CIB’s green bond issue of 2021, providing funding to support EDGE (or equivalent standard) certified buildings in the country.

“Under the bond, Nedbank CIB was able to deliver 1,790 EDGE-certified units, including 1,305 affordable homes,” said Vanessa Murray, divisional executive, property finance at Nedbank CIB.

“The new facility allows us to scale this impact even further, expanding the reach to other real estate segments and aligning with global green building standards while addressing the country’s housing and infrastructure needs.”

Murray said another example of the bond’s impact is illustrated by the creation of the bank’s in-house EDGE expert team, the only one of its kind in an African financial institution.

With IFC support, it has trained 21 Nedbank CIB staff and 21 clients, which enabled the certification of landmark projects such as the Mall of Africa, the largest EDGE-certified retail centre in the world.

“We are proud to partner with Nedbank CIB to expand certified green buildings in South Africa, including for affordable housing,” said Claudia Conceiçao, IFC’s regional director for Southern Africa.

“This collaboration drives South Africa’s shift to a low-carbon economy while improving lives and communities.”

South Africa aims to reduce its GHG emissions by 42% by 2025 and reach net zero carbon emissions by 2050, with green buildings designated as a major part of the solution to meet targets.

Globally, conventional buildings account for nearly 40% of energy-related GHG emissions.

Also read: Standard Bank IFC to support sustainable housing construction