Standard Chartered, GTBank, nine others finance Dangote Refinery

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By PETER EGWUATU

Guaranty Trust Bank and Standard Chartered Bank led nine other local and international commercial banks in the provision of a loan facility to Dangote lndustries Ltd to the tune of $3.3billion for the purpose of constructing the biggest Petroleum Oil Refinery & Petrochemical/ Fertilizer Plants in Nigeria.

This first facility was jointly coordinated by Standard Chartered Bank as the global coordinator, and Nigeria’s Guaranty Trust Bank Plc as the local coordinator.

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 percent and effectively stopping the importation of fertilizer.

The US$9 billion project will be financed by US$3 billion equity and US$6 billion loan capital. Yesterday’s signing ceremony commits the first tranche of loans secured by Dangote, comprising a US$3.3billion term loan facility supported by a consortium of 12 local and international banks.

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.”

In the same vein, CEO of Standard Chartered Bank in Nigeria, Mrs. Bola Adesola, added: “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. According to Mr Segun Agbaje, Managing Director, Guaranty Trust Bank Plc, “This landmark project reinforces Dangote’s commitment to the development of the Nigerian economy.

 

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