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Wednesday, September 4, 2013

Dangote, Consortium sign N539bn deal to build petro-refinery, fertilizer plant in Nigeria


Dangote Industries Limited has entered a deal worth $3.3bn, about N539 billion with a consortium of local and international banks to build petro-refinery and fertilizer plant on Nigerian soil, touted for as the largest on the continent of Africa, following an agreement consummated in Abuja.

Reports available to NaijaAgroNet from Dangote Group showed that 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 USD9 billion project will be financed by USD3 billion equity and USD6 billion loan capital. Today’s signing ceremony commits the first tranche of loans secured by Dangote, comprising a USD3.3 billion term loan facility supported by a consortium of 12 local and international banks. 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,” the Dangote Group said.

“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 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,” he said.

President of Dangote Group, Aliko Dangote was quoted as saying 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,” he said.

Speaking, CEO, Standard Chartered Bank, Ms. Bola Adesola said “Standard Chartered 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.

Equally commenting, Managing Director, Guaranty Trust Bank Plc, Mr. Segun Agbaje, noted that this 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.

Agbaje pointed out that GTBank is very proud to be associated with Dangote Industries on this landmark project and commended its Chairman,  Alhaji Aliko Dangote for his steadfastness, hard work and genuine desire to see remarkable economic improvement within the country.
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