Dangote Refinery completes $2.5bn equity placement

Dangote Petroleum Refinery & Petrochemicals (DPRP) has raised approximately $2.5 billion through the issuance and allotment of new equity via a private placement.

In a statement issued on Thursday, the refinery confirmed the successful completion of the landmark transaction, noting that subscriptions reached 3.7 times the initial offer size.

“Dangote Petroleum Refinery and Petrochemicals FZE (“DPRP” or the “Enterprise”) today announces the successful completion of its landmark Private Placement, which achieved 3.7 times subscription relative to the initial offer size and resulted in the issuance and allotment of approximately US$2.5 billion in new equity,” the statement reads.

“This transaction is believed to be Africa’s largest publicly disclosed primary equity private placement by value.

“As the Enterprise’s first equity capital raise involving external investors beyond its legacy shareholder base, the offering marks a significant milestone in advancing its long-term funding strategy and the continued development of African capital markets.”

The company added that proceeds from the private placement will support the “ongoing expansion of the refinery and petrochemical complex, strengthen the enterprise’s capital structure and provide additional financial flexibility for future growth initiatives”.

According to DPRP, Africa Finance Corporation (AFC) and India Infra Buildco—an investment vehicle facilitated by the African Export-Import Bank (Afreximbank)—were among the investors that subscribed to the offer.

“The offering attracted strong participation from a diverse group of international and African institutional investors, sovereign-related investment vehicles, development finance institutions and long-standing strategic partners, including Africa Finance Corporation (AFC) and India Infra Buildco, an investment vehicle facilitated by the African Export-lmport Bank (Afreximbank), alongside a broad mix of institutional and individual investors, underscoring deep and diversified market confidence in DPRP’s long-term strategy,” the statement added.

President and Chief Executive Officer of Dangote Industries Limited and Chairman of Dangote refinery, Aliko Dangote, described the transaction as a strategic move to broaden and further institutionalise the company’s shareholder base, while raising capital to complement internal cash flows and external funding as the plant advances its expansion agenda.

“This further demonstrates our profound commitment to developing domestic refining and petrochemical capacity – reducing Africa’s reliance on imported refined products and strengthening the continent’s energy security,” he said.

Also speaking, the Managing Director/CEO of Dangote refinery, David Bird, said the strong investor demand highlights confidence in the company’s operations and leadership.

“The exceptional demand we saw is a testament to our operational excellence, execution capacity, and investor confidence in DPRP’s leadership”.

“Following completion of the Private Placement, DPRP is well positioned to continue executing its long-term growth strategy while strengthening Africa’s energy security through world-scale refining and petrochemical capacity,” he said.

Bird added that the level of investor interest reflects confidence in DPRP’s strategy and strengthens its platform for long-term value creation, while acknowledging the support of professional advisers in executing the transaction.