Dangote to borrow N112bn for completion of refinery project

Dangote Industries Limited has resolved to borrow N112 billion from investors to complete its refinery project.

The company requires an additional $1.1 billion to be partly funded by the new bond this year to complete the project.

The N112 billion is the balance of the N300 billion bond raised by DIL in July last year.

Proceeds from the bond will be used to part-finance the refinery project which is scheduled to begin operations in the first half of 2023.

In a note to investors seen by Ripples Nigeria on Tuesday, Afrinvest West Africa Limited, the joint issuing house, said the latest N112,415,455,000 bond with a 10 years tenor would be open to the public in the next few days.

READ ALSO: NNPC to supply Dangote refinery crude oil for 20 years

DIL issued a Series 1 Bond offer on June 30 this year under its N300 billion debt issuance programme.

The Managing Director of Afrininvest Research and Consulting Limited, Abiodun Keripe, said the deal comprised two tranches of seven and 10 years tenors.

“Each tranche priced at the ‘higher range of the initial price guidance, of 12.25 percent to 12.75 percent and 13.00 percent to 13.50 percent for each tranche respectively,” he added.

The bond was oversubscribed with N10 billion demand for the seven-year tranche and N176 billion for the 10-year offering.

Although the Dangote refinery is yet to commence operations, the $2.5 billion petrochemical plant has been operational since March 22.

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