The Nigerian National Petroleum Company (NNPC) Ltd has acquired a 20% stake in Dangote Refinery for $2.76 billion.
The funding, facilitated through Lekki Refinery Funding Limited, involved a $1.036 billion loan, of which $1 billion was paid to Dangote Refinery, and $36 million covered transaction costs.
NNPC pledged 35,000 barrels of crude oil per day for the loan repayment, with an interest rate of three-month LIBOR plus 6.125%.
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To complete the payment, NNPC agreed to a $2.5/bbl discount on the official selling price per barrel on 300,000 barrels per day.
Additionally, Dangote Refinery will receive 100% of NNPC’s portion of any declared dividends throughout the repayment period.
The remaining $1.76 billion of the investment will be paid upon the completion of the refinery project, starting April 1, 2023, or an agreed-upon date.