Dangote Sets New Record Again as it Signs $3.5bn Loan Agreement

Nobody becomes exceptionally successful if he or she does not rise above the every day normal things. This perhaps explains why Aliko Dangote is the richest man in Africa and the richest black man on earth.
Yesterday, the Dangote group did the ‘abnormal’ when it raised the kind of capital not heard of in the history of the country financial transactions to build the biggest refinery, a business, both the very wise and the prudent said was not possible and that it was too capital intensive.
The pan-African conglomerate, Dangote Group yesterday signed an unprecedented jumbo term loan agreement of $3.30 billion with a consortium of both international and local banks for the purpose of constructing the biggest Petroleum Oil Refinery and Petrochemical/fertilizer Plants in Nigeria.
The plants, which will cost a total of $9 billion will generate up to 9,500 direct and 25,000 indirect jobs, in addition to reducing current volumes of refined fuel imports by around 50 per cent and effectively stopping the importation of fertilizer. The $9 billion project will be financed by $3 billion equity and $6 billiion loan capital.
The loan agreement signing between Dangote and a consortium of 12 local and international banks was the first tranche of loans secured by Dangote, comprising $3.3 billion. This first facility was jointly co-ordinated by Standard Chartered Bank as the Global Coordinator, and Nigeria’s Guaranty Trust Bank PLC as the Local Coordinator.
With the refining capacity expected to reach 400,000 barrels of crude oil per day and producing a variety of refined fuel products from local crude resources, Nigeria will cut its current volumes of imported fuel products by a massive 50 per cent. The 2.8 million tonnes of urea will be channelled into growing the local agriculture sector which is essential in producing healthy crops and promoting Nigeria and West Africa’s agricultural development.  The Petrochemical plant will also produce Polypropylene which is a common component of most plastic and fabric products, for example it is used in various forms of packaging, ropes and agro-sacks.
President of Dangote Group, Aliko Dangote said: “This 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.
“As a result, several African nations will be less reliant on importing fuel and fertilizer from foreign markets, reducing the negative impact of negotiating terms within increasingly turbulent international markets.”
According to him the refinery will further create some thousands of job opportunities both direct and indirect and will trickle down to every family and reduce unemployment in the country.
He stated that the Dangote Group would be ready to delve into sectors that are capable of generating the much needed jobs and urged other investors to have abiding faith in the nation’s economy.
Elated at the development, Vice President Namadi Sambo, who was a special guest at the ceremony,  applauded the Dangote Group for supporting the economic agenda of President Jonathan administration, saying the the government has created the enabling environment for businesses to thrive in the country. He commended the Group for gingering the economy.
Also speaking, Petroleum Minister, Deziani Alison Madueke said the Dangote refinery is for the whole world  to note that Nigeria economy is working and that it will open the flood gate of more opportunity.
In his own comment, the Governor of Central Bank Governor, Sanusi Lamido Sanusi stated that refinery deal is a big one in the history of Nigeria, which also shows that Nigerian banks are healthier while attributing the development to CBN’s banking reforms.
He said it was time for Nigerian government to discourage importation and encourage local manufacturing.

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