AFC Leads $2.5bn Investment in Dangote Refinery

Africa Finance Corporation (AFC) has led a $2.5 billion private placement for Dangote Petroleum Refinery and Petrochemicals FZE (DPRP), marking a significant capital injection into Nigeria’s largest integrated refining and petrochemical project. This transaction is DPRP’s first equity capital raise involving new investors beyond its legacy ownership and was oversubscribed 3.7 times, indicating robust demand from various institutional investors.

The investment aligns with Dangote Group's Vision 2030 plan to increase the refinery's capacity from 650,000 barrels per day to 1.4 million barrels per day by 2028. The Dangote refinery, located on a 2,500-hectare site in Lagos, is designed to process crude oil into various refined products.

AFC has a history of partnership with Dangote Group, previously coordinating a $3 billion syndicated loan for DPRP and receiving full repayment of a $300 million senior term loan. AFC President and CEO Samaila Zubairu expressed confidence in DPRP as a key industrial asset in Africa, while Aliko Dangote, Chairman of DPRP and President/CEO of Dangote Industries Limited, described the transaction as a strategic move to broaden the shareholder base.