Dangote Refinery raised $2.5 billion in an equity placement

Dangote Petroleum Refinery and Petrochemicals FZE (DPRP) has completed a private equity placement, raising fresh capital of around $2.5 billion.

The company disclosed this in a statement on Thursday, saying that the transaction is the largest publicly disclosed primary equity private placement in Africa.

the fundraising marks an important milestone in its history and reflects investors’ strong confidence in its long-term growth strategy and operational excellence.

According to the statement, the transaction represents the refinery’s first equity funding round involving external investors beyond the company’s existing shareholder base.

It was stated that the funds raised will be used to support the continued expansion of the refinery and petrochemical complex, strengthen the company’s capital structure and increase financial flexibility to pursue future growth opportunities.

The statement noted that the offering attracted broad participation from international and African institutional investors, country-linked investment vehicles, development finance institutions, strategic partners and individual investors.

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Among the prominent participants were the Africa Finance Corporation and India Infra Buildco, an investment vehicle facilitated by the African Export-Import Bank, which the company said reflected deep and mixed confidence in the long-term prospects of the refinery.

Commenting on the success of the transaction, President and Chief Executive of Dangote Industries Limited and Chairman of Dangote Petroleum Refinery and Petrochemicals, Aliko Dangote, described the placement as a strategic milestone in the company’s evolution.

“This transaction is a strategic step to deepen and institutionalize the company’s shareholder base, while increasing capital to complement internal cash flow and external funding in line with DPRP’s expansion agenda.

“This also demonstrates our steadfast commitment to developing refining and petrochemical capacity in Africa, reducing dependence on imported petroleum products and strengthening the continent’s energy security,” Aliko said.

Managing Director and Chief Executive Officer of Dangote Petroleum Refinery and Petrochemicals, David Bird, said the strong investor response validates the company’s operational performance and growth prospects, adding, “The extraordinary demand we are seeing is a testament to operational excellence, execution capabilities and investor confidence in DPRP’s leadership and future potential.”

The company said the successful completion of the deployment has positioned the refinery to accelerate its long-term growth strategy while strengthening Africa’s energy security through world-scale refining and petrochemical capacity.