Dangote Refinery confirms raising $2.5bn in private equity placement

Dangote Petroleum Refinery and Petrochemicals FZE (DPRP) has raised approximately $2.5 billion through a private equity placement, marking what the company described as Africa’s largest publicly disclosed primary equity private placement.

In a statement on Thursday, the company said the transaction represents its first equity funding round involving external investors beyond its existing shareholder base, reflecting growing investor confidence in the refinery’s long-term growth strategy.

According to the company, proceeds from the capital raise will be used to support the expansion of its refinery and petrochemical complex, strengthen its capital structure and improve financial flexibility for future growth.

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

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

President and Chief Executive of Dangote Industries Limited and Chairman of DPRP, Aliko Dangote, described the transaction as a major milestone in the company’s growth.

“This transaction represents a strategic step to deepen and further institutionalise the enterprise’s shareholder base while raising capital to complement our internal cash flows and external funding as DPRP advances its expansion agenda,” he said.

Dangote added that the funding reinforces the company’s commitment to expanding Africa’s refining and petrochemical capacity, reducing reliance on imported petroleum products and strengthening the continent’s energy security.

Managing Director and Chief Executive Officer of Dangote Petroleum Refinery and Petrochemicals, David Bird, said the strong investor demand reflects confidence in the company’s operations and future prospects.

“The exceptional demand we witnessed is a testament to our operational excellence, execution capability and the confidence investors have in DPRP’s leadership and future potential,” Bird said.

The company said the successful equity placement positions it to accelerate its long-term expansion plans while enhancing Africa’s energy security through increased refining and petrochemical capacity.

It also acknowledged the role of its advisers and partners in the successful completion of the transaction.