According to recent corporate filings, Dangote Refinery just consolidated its legacy construction debts into a fresh $4 billion senior syndicated term loan underwritten by a syndicate of 31 lenders (led by Afreximbank and Access Bank).
On the flip side, financial advisers are targeting an initial market valuation of $40 billion to $50 billion for the public listing.
If we take the conservative lower end of that valuation ($40 billion) and run the standard Islamic equity screen:
4 Billion Consolidated Debt/40 Billion Target Valuation = 10%
For a stock to be halal, its interest-bearing debt must not exceed 33% of its market value.
At a provisional 10%, the refinery is well positioned within the safe zone. The absolute final confirmation will drop the moment the SEC-approved prospectus locks in the exact initial share price.
However, structurally, it is on track to comfortably pass the halal screen. Itโs will be a 100% halal investment.
(My Sources: Institutional investor briefs, Bloomberg valuation reports, and the Afreximbank syndicated loan disclosures).