Finance: Aliko Dangote has secured a $650 million loan to complete Nigeria’s first private refinery

Dangote is building a $10 billion oil refinery and petrochemical complex in Lagos, Nigeria.

Nigerian billionaire, Aliko Dangote, has obtained a seven-year term loan of $650 million from the Cairo-based African Export-Import Bank (Afreximbank) to complete Nigeria’s first private petroleum refinery.

Devakumar Edwin, an Executive Director of Dangote Group, signed the loan agreement on behalf of Africa's richest man at the just concluded annual general meeting and the 25th anniversary of the Afreximbank on Saturday, July 14, 2018, in Abuja.

Edwin also disclosed that the oil refinery is expected to be completed by December 2019.

He said the company will borrow $3.3 billion for the project, to be arranged by Standard Chartered Bank, while the remainder will be sourced through equity and export agencies.

ALSO READ: Africa's largest cement producer wants to borrow N150 billion to finance business operations

Terms of the loan

- The $650 million loan is a seven-year term facility, including a five-year moratorium.

- Interest on the loan to be paid quarterly on the outstanding principal throughout the moratorium period.

- The principal facility is to be repaid over a two-year period in four equal parts on a yearly instalment after the moratorium period.

Dangote's $10 billion refinery

Dangote is building what he termed a 'crazy' $10 billion oil refinery and petrochemical complex located at the Olokola Liquefied Natural Gas (OKLNG) Free Trade Zone in Lekki-Lagos, in Nigeria’s southwest region.

The project when completed will be Nigeria’s first private and Africa’s largest petroleum refinery, with a daily production capacity of 600,000 barrels per day based on projection.

Also from Business Insider Sub-Sahara Africa:

• Super Eagles coach earns more monthly than President Buhari does in a year

• Twitter has started clamping down on fake followers, here's what you will notice

• You will be surprised at the 19 people Nigeria's Buhari follows on Twitter

• Here's why Nigeria is not in a hurry to sign the continental free trade agreement, according to finance minister Kemi Adeosun

• Nigeria’s online savings platform secures $1.1 million seed funding to develop its products and expand massively

• These 6 banks invested N155.45 billion into the sinking fund in 3 years

• Nigeria approves framework that will see a new price for data

• Instagram now allows you post an hour-long video with IGTV, here's how it works