Wednesday, September 04, 2013

Dangote Industries Limited will today sign a loan agreement with a consortium of both local and international banks to the tune of $3.3billion for the purpose of constructing the biggest Petroleum Oil Refinery & Petrochemical/ Fertilizer Plants in Nigeria.
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The plants, which will cost a total of $9 billion will generate up to 9,500 direct and 25,000 indirect jobs, in addition to reducing current volumes of refined fuel imports by around 50 per cent and effectively stopping the importation of fertilizer.

The USD9billion project will be financed by USD3billion equity and USD6billiion loan capital. Today’s signing ceremony commits the first tranche of loans secured by Dangote, comprising a USD3.3billion term loan facility supported by a consortium of 12 local and international banks. This first facility was jointly co-ordinated by Standard Chartered Bank as the Global Coordinator, and Nigeria’s Guaranty Trust Bank PLC as the Local Coordinator.

With the refining capacity expected to reach 400,000 barrels of crude oil per day and producing a variety of refined fuel products from local crude resources, Nigeria will cut its current volumes of imported fuel products by a massive 50 per cent. The 2.8 million tonnes of urea will be channelled into growing the local agriculture sector which is essential in producing healthy crops and promoting Nigeria and West Africa’s agricultural development. The Petrochemical plant will produce Polypropylene which is a common component of most plastic and fabric products, for example it is used in various forms of packaging, ropes and agro-sacks.

President of Dangote Group, Aliko Dangote said: “This plant will further entrench Africa’s role on the global map as not only a valued contributor for natural resources, but also a competent manufacturer of refined products and fertilizer. As a result, several African nations will be less reliant on importing fuel and fertilizer from foreign markets, reducing the negative impact of negotiating terms within increasingly turbulent international markets.”

In the same vein, CEO of Standard Chartered Bank in Nigeria, Ms Bola Adesola, added: “Standard Chartered is proud to support the Dangote Group in a project which will significantly boost Nigeria’s economic productivity and create valuable jobs with specialist skills from key growth sectors. This project is an historic example of self-empowerment and leadership for the continent as a whole – and is made possible through effective partnerships between the Nigerian private sector, Government and international financial institutions. Standard Chartered remains committed to being here for good in Nigeria, and the region.”
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Managing Director of Guaranty Trust Bank PLC, Segun Agbaje said: “this is the largest syndication by Banks in Nigeria and it is being undertaken with the knowledge that the successful implementation of Dangote Refinery and Fertilizer project will have far reaching implications for Nigeria’s economic growth”

Segun Agbaje further stated that GTBank is very proud to be associated with Dangote Industries on this landmark project and praised its Chairman; Alhaji Aliko Dangote for his steadfastness, hard work and genuine desire to see remarkable economic improvement within the country

The Dangote Group’s main revenue and profit contributor is Dangote Cement Plc (DCP), the leading integrated cement producer in Sub Saharan Africa and largest company on the Nigerian Stock Exchange. Given the cement subsidiary’s strong market share along with its higher profit margins, DCP has been able to maintain a robust financial position, and thus assist in leveraging the Group on a conservative basis to undertake expansion projects on this large scale.

Other participating banks are Access Bank PLC, Zenith Bank PLC, Ecobank Nigeria Limited, Fidelity Bank PLC. First Bank Nigeria Limited, Standard Bank of South Africa Limited, UBA PLC, FirstRand Bank, First City Monument Bank PLC and Diamond Bank PLC.

taharqa: [s]God bless GEJ for improving d Investment climate in 9ja. With $9bn Local investments coming in, Nigeria wud continue to lead Africa in FDIs (including LDIs) like it has done for d 1st time in last 2 years; and, by a significant lead too. Kudos GEJ for his Agric Policy, esp d Refined Private sector-led Fertilizer scheme. Of course, God bless Dangote too......... Oya, I don talk. Waiting for d roforofo fights to start [/s]

Rhino.5dm:


I am a very hopeless Donkey.

taharqa: My names is taharqa the useless PDP paid internet dog

taharqa: God bless GEJ for improving d Investment climate in 9ja. With $9bn Local investments coming in, Nigeria wud continue to lead Africa in FDIs (including LDIs) like it has done for d 1st time in last 2 years; and, by a significant lead too. Kudos GEJ for his Agric Policy, esp d Refined Private sector-led Fertilizer scheme. Of course, God bless Dangote too......... Oya, I don talk. Waiting for d roforofo fights to start

trillville:

I thought gej said he will have to remove fuel subsidy completely for any serious investor build a refinery because it will not be profitable. How come dangote is building one now?
So if dangote is building one with fuel subsidies being in place why did gej have to increase the price from 65 naira to 97 naira?

Mr. President has questions to answer oh.

mickyarams: Nice to read good news for a change. This is the type of news we like to hear, not 4cking pdp , apc and the remaining hopeless politicians fighting themselves.

agbameta: It's a done deal.


We are getting Africa's biggest PETROCHEMICAL PLANT.



God bless DANGOTE

God bless Ogun and Ondo state for initiating and conceiving Olokola FTZ and Energy Hub..

God Bless the SW and Oodua Land.

trillville:

I thought gej said he will have to remove fuel subsidy completely for any serious investor build a refinery because it will not be profitable. How come dangote is building one now?
So if dangote is building one with fuel subsidies being in place why did gej have to increase the price from 65 naira to 97 naira?

Mr. President has questions to answer oh.

Rossikk:

It is Dangote you should approach for questions on his corporate strategy, not Mr President.

Rossikk:

It is Dangote you should approach for questions on his corporate strategy, not Mr President.

taharqa: And who told you that dat Subsidy thing wud not bn removed b4 d completion in 2016? Sidon there dey look, Bros..... Moreova, d MD of this project already made it clear that d Refinery wud sell at international prices (minus Shipping costs of course), Subsidy or no Subsidy...

mekaboy: Dangote should have waited till after 2015 to start this project, because if the cabal frustrate. Gej out of power in 2015, that means this refinery will refine palm oil and groundnut oil. Becuase niger delta will shut down oil production and supply. Jst thinking aloud. Lol

PehaKaso: Dangote is d only detribalised ABOKI in Nigeria, but alas, Nigeria wil not last long enough 4 Dango 2 enjoy d fruits of dis proposed refinery

PehaKaso: Dangote is d only detribalised ABOKI in Nigeria, but alas, Nigeria wil not last long enough 4 Dango 2 enjoy d fruits of dis proposed refinery

Rhino.5dm:


1- There is crude in ONDO state and LAGOS state #FACT

2 - India has more 100 refineries without single drop of crude oil, yet.

3 - Die 7 times and 29 times, your region CAN'T and WIL NEVER attract 9 billion dollars investment.

4 - SOUTH WEST is the best of best.


SAI SOUTH WEST!!!

mekaboy:

[s]Lol, we r not comparing regions bro, we are simply looking at external and environmental factors that can affect this investment.

As u said ondo and lagos has oil, in the case where things go wrong after the elcection and the niger delta pple blow up pipelines, then dangote will have to start drilling the oil in lagos and lay underground pipes from lagos to the refinery which will take time and additional cost.

Then will the oil production from the lagos and ondo as u said produce enough output to recover the $9b investment in the expected time frame? This will extend the time.

Now if you know anything about a project, you will know that any change to time will affect the cost. Any change to scope will affect cost and time.

Its like going to invest in libya or syria without looking into the political situation.

Ok talking about region attracting investment, the $9 invested, you and I do not have a dime in it yet. So no matter which region you come from, this investment does not put a dime in ur pocket, unless you are employed[/s].

mekaboy:


As u said ondo and lagos has oil, in the case where things go wrong after the elcection and the niger delta pple blow up pipelines

mekaboy: Well dangote has jst signed the loan he has started nothing yet, I am sure he will want to be sure of the political direction of the country before he proceeds.

He knows what politics is all about and the effect it has on business, he wld not be where he is today without politics.

And for those of you who cannot argue logically or know nothing about business management and project management, you are the ones quick to insult people.

I will suggest you go and read books or do research. If you argument is going to be based or region ethnicity or insults, then we r certainly not on the same level.