Dangote Refinery raises $2.5bn via private equity placement to boost refining

Dangote Petroleum Refinery and Petrochemicals FZE (DPRP) has successfully raised approximately US$2.5 billion in new equity through a private placement, marking a significant milestone for the company. This transaction is believed to be Africa's largest publicly disclosed primary equity private placement and signifies strong investor confidence in DPRP's long-term strategy and operational capabilities.

The capital raise is the first involving external investors beyond the company's existing shareholder base, highlighting DPRP's growing appeal as a global energy and industrial enterprise. The proceeds will be used to fund the continued expansion of the refinery and petrochemical complex, bolster the company's capital structure, and increase financial flexibility for pursuing future growth opportunities.

The placement attracted diverse participation from international and African institutional investors, sovereign-related investment vehicles, development finance institutions, strategic partners, and individual investors. Key participants included the Africa Finance Corporation (AFC) and India Infra Buildco, an investment vehicle supported by the African Export-Import Bank (Afreximbank).

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This transaction represents a strategic step to deepen and further institutionalise the Enterprise’s shareholder base, while raising capital to complement our internal cash flows and external funding as DPRP advances its expansion agenda. It also demonstrates our unwavering commitment to developing Africa’s refining and petrochemical capacity, reducing dependence on imported petroleum products and strengthening the continent’s energy security.

Aliko Dangote, President and Chief Executive of Dangote Industries Limited and Chairman of DPRP, called the placement a strategic step to deepen and institutionalize the company's shareholder base. He emphasized its role in complementing internal cash flows and external funding as DPRP advances its expansion agenda, underscoring the commitment to developing Africa's refining and petrochemical capacity and reducing reliance on imported products.

David Bird, Managing Director and Chief Executive Officer of Dangote Petroleum Refinery & Petrochemicals, stated that the overwhelming investor response validates the company's operational performance and growth outlook. He noted that the exceptional demand is a testament to DPRP's operational excellence, execution capability, and the confidence investors place in its leadership and future potential. With this successful placement, DPRP is poised to accelerate its long-term growth strategy and enhance Africa's energy security.

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The exceptional demand we witnessed is a testament to our operational excellence, execution capability and the confidence investors have in DPRP’s leadership and future potential.