{"id":1088903,"date":"2022-05-16T12:06:36","date_gmt":"2022-05-16T12:06:36","guid":{"rendered":"https:\/\/www.ghanamma.com\/2022\/05\/16\/dangote-seeks-to-raise-1-1bn-to-complete-refinery-project\/"},"modified":"2022-05-16T12:06:36","modified_gmt":"2022-05-16T12:06:36","slug":"dangote-seeks-to-raise-1-1bn-to-complete-refinery-project","status":"publish","type":"post","link":"https:\/\/www.ghanamma.com\/2022\/05\/16\/dangote-seeks-to-raise-1-1bn-to-complete-refinery-project\/","title":{"rendered":"Dangote seeks to raise $1.1bn to complete refinery project"},"content":{"rendered":"<p><\/p>\n<div>\n<div class=\"td-post-featured-image\">\n<figure><img loading=\"lazy\" decoding=\"async\" width=\"600\" height=\"600\" class=\"entry-thumb\" src=\"https:\/\/www.ghanamma.com\/wp-content\/uploads\/2022\/05\/WhatsApp-Image-2021-04-12-at-9.25.53-AM.jpeg\"   alt=\"\" title=\"Dangote\"\/><figcaption class=\"wp-caption-text\">Aliko Dangote<\/figcaption><\/figure>\n<\/div>\n<p>A Fitch report alleges that the\u00a0Nigerian billionaire\u00a0requires an additional $1.1 billion to complete the refinery but has invested all his cash and even borrowed to finance the refinery project.<\/p>\n<p>According to the report, the Dangote refinery project is still on track to be completed by 2023 and requires an additional $1.1 billion capex in 2022 to be partly funded by the new bond.<\/p>\n<p>The report adds that\u00a0Dangote Industries Limited (DIL)\u00a0is planning to establish a local bond programme amounting to $750 million to partially finance the completion of its refinery and petrochemical plant.<\/p>\n<p>DIL\u2019s subsidiaries \u2013 Dangote Oil Refining Company Limited (DORC) and\u00a0Dangote Fertiliser Limited (DFL)\u00a0\u2013 will be co-obligors under the proposed programme.<\/p>\n<p><!-- \/22191989129,1002554\/MGL\/mgl_ado_atunwa_300x250 --><\/p>\n<p><strong>ALSO READ:<\/strong><\/p>\n<p>\u201cFunding for the completion of the refinery project is expected to be partly covered by proceeds of the new bond. If the transaction is not successful, or should completion costs overrun or market conditions in the cement or urea sector deteriorate materially, we do not believe that DIL\u2019s existing creditors would have further lending capacity. We believe that further asset sales, either in cement or stakes in the projects, would be the more likely options to address funding of the refinery.\u201d<\/p>\n<p>Fitch also noted that Dangote Industries suffers from weak corporate governance, adding that it\u2019s a risk for Dangote, who already has a lot of power over operations, to remain the largest shareholder and CEO of the project.<\/p>\n<p>In the report, Fitch said, \u201cDIL has a complex group structure with a large amount of related-party transactions, with a negative effect on operational and financial transparency.<\/p>\n<p>\u201cWe also view the dominance of Aliko Dangote, as CEO and the main shareholder, in operations as an additional risk.\u201d<\/p>\n<p>Fitch concluded its report by saying that the refinery project is expected to sustain strong margins and yield solid cash generation, adding diversification to DIL\u2019s profile and allowing rapid deleveraging.<\/p>\n<p>\u201cOnce operational, we expect this project to contribute around $1 billion to EBITDA annually when ramped up from 2024,\u201d it added.<\/p>\n<p>            <!--  [embed]https:\/\/www.youtube.com\/watch?v=videoseries[\/embed]<!--\" frameborder=\"0\" allow=\"accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture\" allowfullscreen><\/iframe>--><\/p>\n<div class=\"youtube-embed\" data-video_id=\"wW5MNFL2oEQ\"><iframe loading=\"lazy\" title=\"Sakumon TWMA School: Teachers, pupils call for security to protect property -  Adom TV (16-5-22)\" width=\"696\" height=\"392\" src=\"https:\/\/www.youtube.com\/embed\/wW5MNFL2oEQ?feature=oembed&#038;enablejsapi=1\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture\" allowfullscreen><\/iframe><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Aliko Dangote A Fitch report alleges that the\u00a0Nigerian billionaire\u00a0requires an additional $1.1 billion to complete the refinery but has invested all his cash and even borrowed to finance the refinery project. According to the report, the Dangote refinery project is still on track to be completed by 2023 and requires an additional $1.1 billion capex [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":1088905,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[72],"tags":[13749,2565,1712,954,423,5184,4682],"class_list":["post-1088903","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-11bn","tag-complete","tag-dangote","tag-project","tag-raise","tag-refinery","tag-seeks"],"_links":{"self":[{"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/posts\/1088903","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/comments?post=1088903"}],"version-history":[{"count":0,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/posts\/1088903\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/media?parent=1088903"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/categories?post=1088903"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/tags?post=1088903"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}