Dangote Refinery attracts $2.5bn in new equity funding

Dangote Petroleum Refinery and Petrochemicals FZE (DPRP) has raised approximately US$2.5 billion through a private equity placement, in what is believed to be Africa’s largest publicly disclosed primary equity private placement.

The company said the transaction marks a major milestone in its history and reflects strong investor confidence in its long-term growth strategy and operational performance.

According to the company, the equity raise is the first funding round involving external investors beyond its legacy shareholder base, highlighting the refinery’s growing appeal as a leading energy and industrial enterprise.

It said the proceeds would be used to support the continued expansion of the 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 investors were the Africa Finance Corporation (AFC) and India Infra Buildco, an investment vehicle facilitated by the African Export-Import Bank (Afreximbank).

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

He said the transaction would broaden and institutionalise the company’s shareholder base while providing additional capital to complement internally generated funds and existing financing for its expansion plans.

Dangote added that the investment reflects the company’s commitment to strengthening Africa’s refining and petrochemical capacity, reducing dependence on imported petroleum products and improving the continent’s energy security.

Also speaking, Managing Director and Chief Executive Officer of Dangote Petroleum Refinery and Petrochemicals, David Bird, said the strong investor response demonstrated confidence in the company’s operational performance, leadership and future growth prospects.

According to him, the level of demand recorded during the offering underscored investors’ confidence in the refinery’s execution capability and long-term potential.

The company said the successful completion of the placement positions it to accelerate its long-term growth strategy while expanding Africa’s refining and petrochemical capacity.

It also expressed appreciation to its professional advisers and partners for their roles in completing the transaction.

The Dangote Petroleum Refinery, located in the Lekki Free Zone, Lagos, is one of the world’s largest single-train refineries with a capacity of 650,000 barrels of crude oil per day.

The facility is expected to play a significant role in reducing Nigeria’s dependence on imported refined petroleum products and strengthening energy security across Africa.