Dangote Petroleum Refinery and Petrochemicals has secured $1 billion in financial backing as preparations intensify for a proposed initial public offering that could become one of Africa’s biggest industrial listings.
The financing arrangement was put together by Marob Strategies and Consulting DIFC Ltd and Lilium Capital Group. It comprises a $600 million private placement that has already been fully funded and an additional $400 million underwriting commitment for the planned IPO.
Pan-African Refinery Investment SPV, a Lilium Capital affiliate, provided the full funding for the private placement.
The two financial advisers are now seeking investors for the remaining $400 million commitment, with sovereign wealth funds, governments and institutional investors across Africa among those being approached.
According to the advisers, investor interest in the transaction has been strong, reflecting growing demand for large-scale African assets with long-term investment potential.
Dangote Industries Limited President and Chief Executive Officer, Aliko Dangote, described the financing milestone as significant for both the refinery and Africa’s capital markets.
He said the completed placement and additional underwriting commitment demonstrated investor confidence in the refinery and could create opportunities for more institutional investors from Africa and the Caribbean to participate.
Marob Strategies Chairman and former President of the African Export-Import Bank, Benedict Okey Oramah, said the transaction demonstrated the potential for African-led financing structures to attract capital to major assets on the continent.
Lilium Capital Group Chairman Simon Tiemtoré said the refinery fitted the firm’s strategy of connecting major African projects with institutional investors from within and outside the continent.
Located near Lagos, the Dangote refinery has a processing capacity of 650,000 barrels per day. The facility is central to Nigeria’s efforts to reduce dependence on imported petroleum products and strengthen domestic refining capacity.
Although an IPO has been anticipated for some time, no specific date or pricing details have been announced. The proposed listing is expected to attract significant attention from investors seeking exposure to Africa’s industrial and energy sectors.
The advisers have also not disclosed the identities of sovereign wealth funds or other institutions currently considering participation in the remaining $400 million underwriting commitment.
If completed, the IPO could represent a major test of investor appetite for African industrial assets and further deepen the role of local and international institutional capital in financing large-scale projects on the continent.
