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Dangote plans N300 bln bonds to complete petroleum refinery

By Oludare Mayowa 

Africa’s richest man, Aliko Dangote’s company plans to raise N300 billion through sales of bonds to enable him to complete the ongoing construction of a petroleum refinery in Lekki area of Lagos.

According to a report, Dangote Industries Funding Plc is to raise the amount via Series 1 Tranche A (7-year) and Tranche B (10-year) fixed-rate senior unsecured bonds under its N300 billion debt issuance programme.

The proceeds of the issuance of the bonds will be used to finance the Dangote Petroleum Refinery Project.

Dangote Industries Limited is assigned an AA+ long-term rating by GCR and an AA (ngr) long-term rating by Fitch Ratings.

The bonds will be listed on FMDQ Securities Exchange Limited and/or the Nigerian Exchange.

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Dangote is currently building the world’s single largest stream 650,000 barrel per day capacity refinery in Lekki area of Lagos, Nigeria’s commercial hub,

The refinery is part of a vast petrochemical project that also houses the world’s biggest ammonia plant, which has already been completed and started operation.

Once operational, the facility is intended to curb, or even end, the nation’s dependence on fuel imports — a source of embarrassment for the government of Africa’s largest crude producer.

The refinery will be able to supply all the petrol, diesel and aviation fuel used in the West African country, and a third of its output will still be available for export.

The refinery, which commencement date has been shifted severally, may now commence operations in the first half of 2023, according to a report from its fund manager.

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