Dangote refinery completes $2.5bn equity placement

Dangote Petroleum Refinery and Petrochemicals (DPRP) has announced the successful completion of a landmark $2.5 billion private equity placement, a significant milestone in its long-term funding strategy. The offer attracted demand exceeding three times its initial size, resulting in the issuance and allotment of approximately $2.5 billion in new equity.

“

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.

This transaction is believed to be the largest publicly disclosed primary equity private placement by value in Africa. The proceeds will be utilized to support the expansion of the company's refinery and petrochemical complex, bolster its capital structure, and enhance financial flexibility for future growth initiatives.

“

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

The equity raise saw strong participation from a diverse range of investors, including international and African institutional investors, sovereign-related investment vehicles, development finance institutions, and strategic partners. Notable participants mentioned include the Africa Finance Corporation and India Infra Buildco, an investment vehicle facilitated by the African Export-Import Bank.

“

The offering marks a significant milestone in advancing its long-term funding strategy and the continued development of African capital markets.

Aliko Dangote, President and Chief Executive Officer of Dangote Industries Limited and Chairman of DPRP, stated that the transaction strengthens the company's ownership structure and provides crucial funding for expansion. He described the private placement as a strategic step to deepen and institutionalize the enterprise's shareholder base, complementing internal cash flows and external funding as DPRP advances its expansion agenda. This move underscores the company's commitment to increasing refining capacity across the continent.

“

This transaction would help strengthen the company’s ownership structure while providing additional funding for expansion.