Dangote Refinery Secures $2.5bn for Expansion Plans

Dangote Petroleum Refinery and Petrochemicals FZE has completed a $2.5 billion private placement led by the Africa Finance Corporation (AFC) to support the expansion of its Lagos refining and petrochemical complex. This transaction is significant as it represents the refinery’s first equity capital raise involving new investors outside its legacy ownership structure.

The private placement attracted subscriptions worth 3.7 times the offered amount, indicating strong demand from various institutional investors. The entire $2.5 billion was raised from a group led by AFC, although the specific contribution and equity stake of AFC were not disclosed.

The new capital will complement the refinery's internal funds and external debt as part of its Vision 2030 expansion program, which aims to increase its capacity from 650,000 barrels per day to 1.4 million barrels per day by 2028. The refinery, valued at approximately $20 billion, processes crude oil into various products for local and international markets.

AFC's involvement underscores its confidence in the refinery as a key industrial asset in Africa.