By Yakubu LAAH InvestAdvocate
Lagos (INVESTADVOCATE)- Standard Chartered Bank, Guaranty Trust Bank Plc (GTBank), and 10 other banks Wednesday signed off a loan deal of $3.3 billion for the proposed construction of the biggest Petroleum Oil Refinery & Petrochemical Plants in Nigeria.
According to information obtained by Investdvocate, the plants, which will cost a total of $9 billion, will be financed by $3.0 billion equity and $6.0 billion loan capital.
We gathered that Wednesday’s signing ceremony commits the first tranche of loans secured by Dangote, comprising a $3.3 billion term loan facility by a consortium of 12 local and international banks.
The refinery is expected to reach a capacity of 400,000 barrels of crude oil per day and producing a variety of refined fuel products from local crude resources.
Reports has it that Aliko Dangote, President of the Dangote Group, said the plant will further entrench Africa’s role on the global map as not only a valued contributor for natural resources, but also a competent manufacturer of refined products and fertilizer.
On her part, Bola Adesola, chief executive officer (CEO) of Standard Chartered in Nigeria said her bank is proud to support the Dangote Group in a project which will significantly boost Nigeria’s economic productivity and create valuable jobs with specialist skills from key growth sectors.
“This project is an historic example of self-empowerment and leadership for the continent as a whole – and is made possible through effective partnerships between the Nigerian private sector, Government and international financial institutions. Standard Chartered remains committed to being here for good in Nigeria, and the region,†she said.
Similarly, Segun Agbaje, managing director (MD) GTBank affirmed that the loan signing is the largest syndication by Banks in Nigeria and it is being undertaken with the knowledge that the successful implementation of Dangote Refinery and Fertilizer project will have far reaching implications for Nigeria’s economic growth.
“GTBank is very proud to be associated with Dangote Industries on this landmark project and praised its Chairman; Alhaji Aliko Dangote for his steadfastness, hard work and genuine desire to see remarkable economic improvement within the country,†Agbaje said.
Standard Chartered and Nigeria’s GTBank are both global and local coordinators to the loan respectively.
Other participating banks are Access Bank Plc, Zenith Bank Plc, Ecobank Nigeria Limited, Fidelity Bank Plc. First Bank Nigeria Limited, Standard Bank of South Africa Limited, UBA Plc, FirstRand Bank, First City Monument Bank Plc and Diamond Bank Plc.
