Dar es Salaam. Dangote Petroleum Refinery and Petrochemicals (DPRP) has secured $600 million through a private placement, marking the first phase of a broader $1 billion underwriting programme ahead of a planned initial public offering (IPO).
The transaction, announced by the refinery’s co-financial advisers Marob Strategies and Consulting DIFC Ltd and Lilium Capital Group on Tuesday, is expected to broaden investor participation in one of Africa’s largest downstream energy projects, according to a statement.
The $1 billion underwriting programme comprises the completed $600 million private placement and a further $400 million underwriting commitment to support the planned IPO.
The $400 million commitment, provided by Pan-African Refinery Investment SPV, a subsidiary of Lilium Capital, will be implemented once the IPO is launched, subject to market conditions, corporate and regulatory approvals, definitive documentation and compliance with securities laws.
The development gives investors across Africa and the Caribbean an opportunity to participate in the ownership of the Dangote Petroleum Refinery and Petrochemicals platform, which is positioned as a major contributor to Nigeria’s energy security and industrialisation.
Dangote Industries Limited president and chief executive officer Aliko Dangote described the completion of the private placement as an important milestone for the refinery and African capital markets.
“This is an important milestone for DPRP and for African capital markets,” Mr Dangote said.
He said the transaction, together with the $400 million IPO underwriting commitment, reflected confidence in the refinery’s strategic role while creating opportunities for wider participation by African and Caribbean sovereign wealth funds, governments and institutional investors.
The co-financial advisers are now coordinating the sell-down of the underwriting participation in the completed $600 million private placement across Global Africa.
They are engaging sovereign wealth funds, governments, institutional investors and other eligible investors as part of the process.
According to the advisers, investor interest has been strong, particularly among African and Caribbean institutional investors.
Mr Dangote said the work by Marob Strategies and Lilium Capital had established a platform for wider participation in the refinery by investors across Global Africa.
Marob Strategies chairman Prof Benedict Oramah said the company would focus on distributing the transaction across Global Africa while engaging sovereign wealth funds, governments and institutional investors.
“The level of interest confirms the appetite for African-led capital markets transactions that provide investors with access to transformative assets on the continent,” he said.
Lilium Capital Group chairman Simon Tiemtoré said the transaction demonstrated the company’s commitment to connecting African investment opportunities with institutional investors in Africa and international markets.
“By mobilising long-term capital for strategic assets such as the Dangote Petroleum Refinery, we are supporting industrialisation, strengthening capital markets and contributing to sustainable economic growth across the continent,” he said.
The Dangote refinery is one of Africa’s major downstream energy and petrochemical projects and is intended to support domestic petroleum supply, reduce reliance on imports and provide refined products for regional and international markets.
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