The Dangote Group on Wednesday sealed a $3.3bn medium term deal with 11 local and foreign banks to finance the building of a petrochemical plant consisting of a refinery and fertiliser plant in the country.
The investment initiative is in form of a loan agreement for the construction of a petrochemical plant to be located at the Olokola Free Trade Zone in Ondo and Ogun states.
The loan facility was coordinated globally by Standard Chartered Bank and was co-financed in Nigeria by Guaranty Trust Bank Plc, Access Bank Plc, Zenith Bank Plc, Ecobank Nigeria Limited and Fidelity Bank Plc. Other co-financiers are First Bank of Nigeria Limited, United Bank for Africa Plc, First City Monument Bank Plc, Diamond Bank Plc, FirstRand Bank and Standard Bank of South Africa Limited. According to Alhaji Aliko Dangote,
“As an investor who believes in Nigeria, knows Nigeria well and whose prosperity was made in Nigeria, we have responded to the challenge with our recent decision to invest over $9bn in a refinery/petrochemical and fertiliser complex to be located at the OKLNG Free Trade Zone. This complex will be the largest industrial complex project ever in the history of our great nation.
“Funding for the project will come from a $3.3bn medium term loan, the agreement for which we are signing today, and also an additional $2.25bn from the Development Financial Institutions to augment our equity contribution of $3.50bn.”
Information from the Punch was used in writing this article