AFC, Afreximbank Vehicle Among Investors in Dangote Refinery’s Record Equity Raise

The Africa Finance Corporation (AFC) and India Infra Buildco, an investment vehicle facilitated by the African Export-Import Bank (Afreximbank), were among investors that participated in Dangote Petroleum Refinery and Petrochemicals FZE’s (DPRP) successful US$2.5 billion private placement.

The private placement was 3.7 times oversubscribed relative to the initial offer size, resulting in the issuance and allotment of approximately US$2.5 billion in new equity.

The transaction is believed to be Africa’s largest publicly disclosed primary equity private placement by value and marks DPRP’s first equity capital raise involving external investors beyond its legacy shareholder base.

Dangote Petroleum Refinery and Petrochemicals said proceeds from the private placement will support the continued expansion of its refinery and petrochemical complex, strengthen the company’s capital structure and provide additional financial flexibility for future growth initiatives.

The fundraising forms part of DPRP’s long-term funding strategy as the company combines internal cash flows and external financing to support its expansion plans.

The offering attracted participation from international and African institutional investors, sovereign-related investment vehicles, development finance institutions, strategic partners and individual investors.

Aliko Dangote, President and Chief Executive Officer of Dangote Industries Limited and Chairman of DPRP, said the transaction would deepen and further institutionalise the company’s shareholder base while raising capital to complement internal cash flows and external funding.

“This further demonstrates our profound commitment to developing domestic refining and petrochemical capacity – reducing Africa’s reliance on imported refined products and strengthening the continent’s energy security.” he added.

He said the fundraising would support DPRP’s expansion agenda and the development of domestic refining and petrochemical capacity.

David Bird, Managing Director and Chief Executive Officer of Dangote Petroleum Refinery and Petrochemicals, said the demand received during the private placement reflected investor confidence in the company’s operations, execution capacity and leadership.

Following completion of the transaction, DPRP said it is positioned to continue implementing its long-term growth strategy while expanding its refining and petrochemical capacity.

The company acknowledged the support of its professional advisers in completing the private placement.