Dangote Industries Limited (“DIL” or “the Company”), a well-diversified Nigerian holding company headquartered in Lagos, Federal Republic of Nigeria, was established in April 1985 by the Sponsor as a trading company, but serves today as a multinational conglomerate. The Company, its subsidiaries and affiliates (together the Group) operates eight integrated cement plants in Nigeria, Senegal, South Africa, Ethiopia, Tanzania and Zambia for a total capacity of circa 44 million mtpa, and is in the process of developing cement operations in nine other African countries and Nepal, including several fragile states such as Sierra Leone, Liberia and Ivory Coast. DIL also has: salt production activities in Nigeria; is in the process of expanding its agricultural activities in sugar from a refinery at the Lagos port to substantially backward integrate into sugar plantations, as well as investments in rice growing and milling; and, has acquired and is developing 2 oil & gas Oil Mining Leases (OML) from recent divestment from the international oil majors. In addition, the group has plans to expand into: power generation in Nigeria in joint venture with The Blackstone Group LP; and, is developing a 1,100km offshore gas gathering pipeline that will transport offshore gas including from Dangote-owned OMLs to supply the Project and the Company’s oil refinery that is in development, as well as connect to the existing Escravos Lagos Pipeline (ELP) to supply gas to the Nigeria power sector and industries, and potentially regionally in West Africa.

The Project is expected to cost approximately US$2.2 billion, which the Borrower proposes to finance with equity of approximately US$1.3 billion, US$213 million of commercial bank debt and DFI debt (including funding through Bank of Industry (“BOI”) of Nigeria) of approximately US$286 million. IFC will fund up to US$150 million of the DFI tranche while Africa Development Bank (“AfDB”) is expected to fund up to US$300 million.

150.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	150.0
Equity

* These investment figures are indicative

The Company is currently headquartered in Lagos, Nigeria. The fertilizer plant is located in the Lekki Free Trade Zone (LFTZ), some 50 km east of the center of Lagos, Nigeria. IFC is considering a US$150 million loan to DIL as finance to support development of the urea fertilizer plant. The LFTZ is some 16,500 hectares (ha) in extent and occupies the Lekki Peninsular with the Atlantic Ocean to the south and the Lekki lagoon to the north. The master plan for the entire area includes a new airport, heavy and light industrial areas, commercial and residential areas and a new sea port, amongst other specific designated use areas. For the most part though, the LFTZ is presently undeveloped aside from a few small industrial facilities and an internal road network; the fertilizer plant is the first major development and located within an area designated for heavy industrial use.

The Project is expected to: (i) support the Nigerian Government''s initiative to increase fertilizer usage to 50kg/ha to improve agricultural yield; (ii) lower GHG emission as the Project will use approximately 60 million MMBTU of gas annually, of which a significant amount is expected to be associated gas which would otherwise be flared (iii) provide 5000 jobs during construction and 800 direct jobs post-construction ;(iv) send a strong message to other investors to seek similar opportunities in the manufacturing sector and areas where Nigeria has a comparative advantage over other countries once the Project is successfully implemented; (v) reduce reliance on imports, save foreign exchange, while the export sales will increase foreign exchange generation and (vi) help develop the nascent manufacturing sector in Nigeria by installing competitive new industrial capacity in the country.

IFC''s role and additionality in the proposed investment is expected to include: (i) guidance on developing and implementing environmental and social policies and procedures; (ii) promote corporate governance best practice in the Company; (iii) provision of long-term growth capital structured to suit the cashflows of the project; and (iv) access to IFC''s global industry knowledge, regional networks and relationships in West Africa African countries to support the Company''s expansion.

This is Category A project according to IFC’s Environmental and Social Review Procedure. The project has the potential for significant adverse environmental and social risks and impacts that are diverse, irreversible and unprecedented. The project is located within the Lekki Free Trade Zone, a new development area with limited infrastructure at present, and thus the Company needs to ensure that for the most part, all ancillary facilities required for the fertilizer are developed by the Company itself.

Please refer to the related Environmental and Social Review Summary (ESRS) document for this project.

Please refer to the Environmental and Social Action Plan (ESAP) tab in the related Environmental and Social Review Summary (ESRS) document for this project.