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Dangote arranges $4.5bn financing for refinery

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The President , Dangote Industries Limited , Aliko Dangote , has arranged more than $ 4 . 5 bn in debt financing for his crude oil refinery project and aims to start production in early 2020 .Dangote , Africa ’ s richest man , is building a refinery with a capacity of 650 , 000 barrels per day to help reduce Nigeria ’ s dependence on imported petroleum products .

He was quoted by Reuters as saying that lenders would commit about $ 3 . 15 bn , with the World Bank ’ s private sector arm providing $ 150 m , adding that he was investing more than 60 per cent from his own cash flow .

Dangote said that Standard Chartered Bank is arranging funds for the project .

He stated , “ We will end up spending between $ 12 bn and $ 14 bn . The funding is going to come through equity , commercial bank loans , export credit agencies and developmental banks .

“ Hopefully , we will finish mechanical ( construction ) by next year and products will start coming out in the first quarter of 2020 . ”

Dangote said the Central Bank of Nigeria would provide guarantees for about N 575 bn in local currency for 10 years , with the African Development Bank providing a $ 300 m loan .

According to him , the trade banks from China , India and some European countries are also in the mix .

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Last week , Dangote signed a loan of $ 650 m with the African Export – Import Bank for the project.

He said he was looking to acquire more oilfields as his focus shift towards the oil sector to feed the refinery .

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