AFC Leads $2.5bn Dangote Refinery Equity Raise as Plant Targets 1.4m bpd Capacity

Nigeria's leading African Finance Corporation, Africa Finance Corporation (AFC), has spearheaded a $2.5 billion private placement by Dangote Petroleum Refinery and Petrochemicals FZE (DPRP). This significant capital injection is aimed at bolstering the largest integrated refining and petrochemical project in Nigeria. The transaction, which was oversubscribed by a factor of 3.7 times, indicates strong interest from global and African institutional investors, sovereign entities, development finance institutions, and strategic partners.

This fresh capital follows Dangote Group's ambitious vision of doubling the refinery's capacity from 650,000 barrels per day to 1.4 million barrels per day by 2028. The $20 billion Dangote refinery and petrochemical complex, currently under construction on a 2,500-hectare site in Lagos, is poised to produce a wide array of refined products for the Nigerian, African, and international markets.

This investment further solidifies AFC's long-standing relationship with Dangote Group, which has been involved in several of Africa's most substantial industrial ventures. These include a $3 billion syndicated loan for DPRP and the repayment of a foundational $300 million senior term loan to Dangote Industries Limited. Speaking on the transaction, AFC's President and Chief Executive Officer, Samaila Zubairu, emphasized the corporation's steadfast confidence in DPRP as one of Africa's most significant industrial assets.

He highlighted their ongoing support from the project's earliest stages, including their contribution to syndicated financing and working capital during commissioning, to their current investment in the refinery's next growth phase. "This is what long-term partnership looks like," Zubairu remarked. Aliko Dangote, chairman of DPRP and president/CEO of Dangote Industries Limited, described the transaction as a strategic move to broaden the company's shareholder base while raising capital to support its expansion plans.

He also stated that the transaction underscores the group's commitment to increasing domestic refining and petrochemical production, thereby reducing Africa's dependence on imported refined products and enhancing energy security across the continent. DPRP's managing director and CEO, David Bird, noted that the transaction's strong subscription reflects investor confidence in the refinery's operations and management. He credited their strong performance for attracting the exceptional demand.