Dangote Refinery Secures $2.5bn in Equity Placement

Dangote Petroleum Refinery and Petrochemicals has completed a significant $2.5 billion private equity placement, which attracted demand exceeding three times the initial offer size, achieving a subscription rate of 3.7 times. This transaction is noted as Africa’s largest publicly disclosed primary equity private placement by value.

The company stated that this equity raise marks a major milestone in its long-term funding strategy, being its first capital raise involving external investors beyond its legacy shareholder base. Proceeds from the placement will aid in expanding the refinery and petrochemical complex, strengthening the capital structure, and providing financial flexibility for future growth initiatives.

The investment saw participation from a diverse group of international and African institutional investors, including the Africa Finance Corporation and India Infra Buildco, facilitated by the African Export-Import Bank. Aliko Dangote, President and CEO of Dangote Industries Limited and Chairman of Dangote Petroleum Refinery and Petrochemicals, emphasized that the transaction would enhance the company’s ownership structure and support its expansion agenda, reflecting a commitment to increasing refining capacity in Africa.