AFC, Afreximbank-Backed Vehicle Join Dangote Refinery’s $2.5bn Placement with Offer Oversubscribed 3.7 Times
Dangote Petroleum Refinery and Petrochemicals FZE has completed a landmark private equity placement, raising approximately $2.5 billion to finance its expansion and strengthen its capital position.
The company said on Thursday that the placement attracted subscriptions worth 3.7 times the initial offer size, reflecting strong demand from African and international investors.
The transaction is believed to be Africa’s largest publicly disclosed primary equity private placement by value. It is also the refinery’s first equity fundraising involving investors outside its legacy shareholder base.
Proceeds from the placement will support the continued expansion of the refinery and petrochemical complex, strengthen the company’s capital structure and provide greater financial flexibility for future growth initiatives.
The offer attracted institutional investors, development finance institutions, sovereign-related investment vehicles, strategic partners and individual investors.
Participants included the Africa Finance Corporation and India Infra Buildco, an investment vehicle facilitated by the African Export-Import Bank, alongside other African and international investors.
Chairman of Dangote Petroleum Refinery and Petrochemicals, Aliko Dangote, described the transaction as a strategic move to broaden and further institutionalise the company’s shareholder base.
“This is 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,” Dangote said.
He added that the investment demonstrated the company’s commitment to increasing domestic refining and petrochemical capacity, reducing Africa’s dependence on imported refined products and improving the continent’s energy security.
The refinery’s managing director and chief executive officer, David Bird, said the level of demand demonstrated investors’ confidence in the company’s operations, leadership and ability to execute its strategy.
“The exceptional demand we saw is a testament to our operational excellence, execution capacity and investor confidence in DPRP’s leadership,” Bird said.
The capital injection is expected to strengthen the refinery’s ability to pursue its long-term growth plans and expand world-scale refining and petrochemical capacity.
The company said the strong investor response also reinforced its platform for long-term value creation and its role in advancing Africa’s energy security.
