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| Dangote’s $3.3 billion syndicated loan | |
| Lead managers | Standard Chartered, Guarantee Trust Bank |
| return to the Deals of the Year 2013 index | |
The head of Nigeria’s Dangote Industries, Africa’s richest man, Aliko Dangote, signed a $3.3 billion deal on September 4 2013 to finance the building of the largest oil refinery in Nigeria.
The refinery will transform Nigeria from an importer of refined products to an exporter, reducing current volumes of refined fuel imports by around 50%. Although Nigeria is Africa’s largest oil producer, the country lacks the capacity and infrastructure to produce its own refined fuel and nearly three quarters is imported.
Large petrochemical and fertilizer plants will also be constructed and will, in effect, stop fertilizer imports to the country.
“The economic impact will be huge and Nigeria will become a lot more self-sufficient. But the social impact that the project will have is also worth noting,” says Bola Adesola, CEO of Standard Chartered in Nigeria. “This large project will have a knock-on effect and will spur the growth of smaller-scale industries. The project will create 9,000 direct jobs, 25,000 indirect jobs and will provide training for between 5,000 and 6,000 technicians. For a young country like Nigeria, where 65% of the population is under 30 years old, this will provide new opportunities for our people. This is a landmark deal. It stands out because of the social and economic impact of the programme. This is something that other African countries and corporates should look to replicate.”
The complete project is set to cost $9 billion: $3 billion will come in equity from Dangote Industries and $6 billion will be raised in loan capital. The deal was signed with 12 local and international banks, led by Standard Chartered and Guarantee Trust Bank.
