Dangote Refinery Raises $750M in Eurobond for IPO Plans

Dangote Refinery has raised $750 million in its debut Eurobond, a significant achievement for the Dangote Group as it seeks to diversify its funding sources and strengthen its balance sheet in anticipation of a public listing. The Eurobond is a five-year dollar-denominated bond due in July 2031, priced at par with a yield of 7.50%.

This private placement targets qualified institutional buyers and follows a similar fundraising strategy employed by Dangote Fertiliser in April, which raised $750 million at a yield of 7.75%. The success of this bond issuance reflects growing investor confidence in the Dangote Group's export-oriented business model, distinguishing it from broader sovereign risks in Nigeria.

The total amount raised by the Dangote Group in international debt this year now stands at $1.5 billion. The funds will help optimize the company's debt profile by replacing shorter-term local bank loans with longer-tenor fixed-rate dollar debt maturing in 2031.

Additionally, Dangote Refinery announced a reduction in ex-depot petrol prices, marking its fourth price cut within a month.