Dangote Refinery Secures $1bn Funding Ahead Of IPO

Dangote Petroleum Refinery & Petrochemicals has secured a $1 billion underwriting programme ahead of its planned Initial Public Offering (IPO), marking a major step towards the proposed listing of the multibillion-dollar refinery.

The financing package includes a completed and funded $600 million private placement and an additional $400 million underwriting commitment for the planned IPO.

The programme was structured by Marob Strategies and Consulting DIFC Ltd and Lilium Capital Group, with the $600 million private placement underwritten and funded by Pan-African Refinery Investment SPV, a subsidiary of Lilium Capital.

The advisers said they are now working to distribute underwriting participation among sovereign wealth funds, governments, institutional investors and other eligible investors across Africa and international markets.

They said the strong investor interest reflects growing appetite for major African industrial assets with long-term economic potential. The programme is also expected to promote African capital flows and support industrialisation, energy security, import substitution and greater economic integration under the African Continental Free Trade Area.

President and Chief Executive of Dangote Industries Limited, Aliko Dangote, described the transaction as an important milestone for the refinery and African capital markets.

He said the completed private placement and additional underwriting commitment demonstrated investor confidence in the refinery’s strategic importance and created an opportunity for wider participation by African and Caribbean institutional investors.

Chairman of Marob Strategies, Professor Benedict Okey Oramah, said the transaction demonstrated strong appetite for African-led capital-market opportunities and could serve as a model for similar deals on the continent.

Lilium Capital Group Chairman, Simon Tiemtoré, said the mandate aligned with the firm’s strategy of connecting major African investment opportunities with institutional capital across Africa and international markets.

The underwriting represents another step towards the refinery’s planned IPO. However, details of the proposed listing date, valuation, offer size and the proportion of the refinery to be offered to investors have not been disclosed.

Located in Lagos’ Lekki Free Zone, the Dangote refinery is one of Africa’s largest industrial projects and a key part of Nigeria’s efforts to increase domestic refining capacity and reduce reliance on imported petroleum products.