Dangote Refinery Raises $2.5bn in Oversubscribed Equity Placement

By Opeyemi Adelakun

Dangote Petroleum Refinery and Petrochemicals has secured approximately $2.5 billion through a private equity placement after the offer attracted investor demand far above the amount initially offered.

The company announced on Thursday that the fundraising exercise was 3.7 times oversubscribed, describing it as the largest publicly disclosed primary equity private placement by value ever completed in Africa.

According to the refinery, the capital raise marks its first major equity funding involving investors outside its traditional shareholder base and represents a significant step in strengthening its long-term financing strategy.

The company said the fresh funds would be deployed to expand its refinery and petrochemical operations, reinforce its capital structure and provide greater financial flexibility for future growth.

It noted that the transaction drew interest from a broad mix of African and international institutional investors, development finance institutions, sovereign-backed investment vehicles and strategic partners.

Among the participating investors were the Africa Finance Corporation (AFC) and India Infra Buildco, an investment vehicle facilitated by the African Export-Import Bank (Afreximbank), alongside other institutional and private investors.

Commenting on the development, President and Chief Executive Officer of Dangote Industries Limited and Chairman of Dangote Petroleum Refinery and Petrochemicals, Aliko Dangote, said the successful fundraising would broaden the company’s shareholder base while complementing existing internal and external funding sources.

He said the investment would accelerate the refinery’s expansion plans and reinforce the company’s commitment to increasing Africa’s refining and petrochemical capacity, reducing dependence on imported petroleum products and enhancing the continent’s energy security.

Also speaking, the Managing Director and Chief Executive Officer of Dangote Petroleum Refinery and Petrochemicals, David Bird, said the strong investor response reflected confidence in the company’s operational performance, leadership and long-term growth strategy.

The refinery added that the successful completion of the equity placement positions it to continue executing major expansion projects while contributing to the development of African capital markets.

Located in Lagos, the Dangote Refinery has a refining capacity of 650,000 barrels of crude oil per day, making it one of the largest single-train refineries in the world.