Nigeria: Dangote Refinery Raises $2.5 Billion Through Oversubscribed Private Placement

Dangote Petroleum Refinery, Africa’s largest refinery, has raised $2.5 billion through a private placement of new equity, with investor demand reaching 3.7 times the size of the initial offering, the company said on Thursday.

The fundraising, which the company described as Africa’s largest publicly disclosed primary equity private placement by value, marks the refinery’s first equity capital raise involving external investors beyond its existing shareholders.

The proceeds will be used to support the expansion of the refinery and petrochemical complex, strengthen the company’s balance sheet and provide additional financial flexibility for future growth, Dangote Petroleum Refinery said in a statement.

The company said the offering attracted a broad range of international and African institutional investors, sovereign-related investment vehicles, development finance institutions and strategic partners.

Among the investors were Africa Finance Corporation (AFC) and India Infra Buildco, an investment vehicle facilitated by the African Export-Import Bank (Afreximbank), the statement said.

Aliko Dangote, president and chief executive of Dangote Industries and chairman of the refinery, said the transaction would broaden the company’s shareholder base while complementing internal cash flow and external financing for its expansion plans.

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

David Bird, the refinery’s chief executive, said the level of investor demand reflected confidence in the company’s operations and long-term strategy.

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

He added that the fundraising would position the company to continue executing its long-term growth strategy while expanding refining and petrochemical capacity.

The company also acknowledged the support of its advisers in completing the transaction.