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Businessman Aliko Dangote announced on Tuesday (July 24th) that he has raised more than $ 4.5 billion through debt financing, out of a total of $ 14 billion for his crude oil refinery project. Nigeria
With $ 150 million in support from the private sector branch of the World Bank, the project will benefit from several banks pledging $ 3.15 billion. In addition, the country's central bank will back guarantees for about $ 1.6 billion in local currency over 10 years, while the African Development Bank (AfDB) will provide a $ 300 million loan.
"We will eventually spend between $ 12 and $ 14 billion. Funding will come from equity, commercial bank loans, export credit agencies and development banks. I hope we will finish the mechanical construction by next year and that the products will start coming out in the first quarter of 2020, "said Dangote.
As a reminder, in early July 2014, Dangote signed a $ 650 million loan facility with the African Export-Import Bank (Afreximbank) for the said project in Nigeria. According to the terms of the installation read at the time of signing, the 7-year loan would be subject to a 5-year moratorium.
Once operational, Dangote Refinery will help Nigeria save $ 5 billion on imports oil, and will also help the country with about $ 7.5 billion in import savings. Despite being an exporter of crude oil, Nigeria imports most of its oil due to a lack of domestic refining capacity.
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