Africa’s largest petroleum refinery, Dangote Refinery, has secured a $1 billion underwriting programme ahead of its planned initial public offering, the company said on Tuesday.
The programme, structured by Marob Strategies and Consulting DIFC Ltd and Lilium Capital Group, comprises a completed and funded $600 million private placement and a further $400 million underwriting commitment in support of the planned IPO.
The Dangote Group said the $600 million private placement had been underwritten and funded by Pan-African Refinery Investment SPV, a subsidiary of Lilium Capital Group.
Marob Strategies and Lilium Capital are coordinating the distribution of the underwriting participation across Global Africa, engaging sovereign wealth funds, governments, institutional investors and other eligible investors, the company said.
The advisers said the response had been strong, reflecting growing institutional appetite for large-scale African assets with the potential to generate long-term economic value.
The programme is also expected to boost intra-African capital flows and support the development of a more integrated African capital market under the African Continental Free Trade Area, the company said.
“This is an important milestone for DPRP and for African capital markets,” Dangote Industries Chief Executive Aliko Dangote said.
He said the transaction reflected confidence in the refinery’s strategic role and would provide a platform for broader participation by African and Caribbean sovereign wealth funds, governments and institutional investors across Global Africa.
Marob Strategies Chairman Benedict Okey Oramah said the transaction demonstrated investor appetite for African-led capital markets transactions that provide access to transformative assets on the continent.
Marob Strategies is focused on distributing the underwriting participation across Global Africa and is engaging sovereign wealth funds, governments, institutional investors and other eligible investors, Oramah said.
Lilium Capital Group Chairman Simon Tiemtoré said the mandate was part of the firm’s effort to connect major African investment opportunities with institutional investors across Global Africa and international markets.
“By mobilising long-term capital for strategic assets such as the Dangote Petroleum Refinery, we are supporting industrialisation, strengthening capital markets and contributing to sustainable economic growth across the continent,” Tiemtoré said.
The Dangote refinery, located in Lagos, has a capacity of 650,000 barrels per day and is Africa’s largest oil refinery.
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