The Dangote Petroleum Refinery and Petrochemicals has secured a $1billion underwriting programme as it prepares for a planned Initial Public Offering (IPO).
The financing arrangement, structured by Marob Strategies and Consulting DIFC Limited and Lilium Capital Group, consists of a completed $600 million private placement and an additional $400 million underwriting commitment to support the proposed IPO.
According to a statement issued by the Dangote Group on Tuesday, the $600m private placement has already been fully underwritten and funded by Pan-African Refinery Investment SPV, a subsidiary of Lilium Capital Group.
Marob Strategies and Lilium Capital are now working on distributing the underwriting participation across Global Africa, targeting sovereign wealth funds, governments, institutional investors and other eligible investors.
The advisers said the response from potential investors had been encouraging, indicating strong institutional interest in large-scale African assets with long-term economic potential.
The programme is also expected to encourage greater movement of capital within Africa and contribute to the development of a more integrated continental capital market under the African Continental Free Trade Area framework.
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President and Chief Executive Officer of Dangote Industries Limited, Aliko Dangote, described the transaction as a significant development for both the refinery and Africa’s capital markets.
He said the successful private placement and additional underwriting commitment demonstrated investor confidence in the strategic importance of the refinery.
“This is an important milestone for DPRP and for African capital markets,” Dangote said.
He added that the arrangement would create opportunities for African and Caribbean sovereign wealth funds, governments and institutional investors to participate in the refinery’s future.
According to him, the transaction could broaden investor participation in one of Africa’s most significant industrial assets.
Chairman of Marob Strategies, Prof. Benedict Oramah, said the transaction demonstrated the growing appetite for African-led capital market deals that give investors access to major assets on the continent.
Prof. Oramah said his firm would continue working with investors across Global Africa to distribute the underwriting participation.
He described the level of interest in the transaction as evidence that institutional investors were increasingly looking for opportunities linked to transformative African projects.
He added that the success of the Dangote Refinery transaction could encourage similar capital-market deals involving major African assets.
Chairman of Lilium Capital Group, Simon Tiemtoré, said the mandate aligned with the firm’s objective of connecting major African investment opportunities with institutional capital from across the continent and international markets.
He said mobilising long-term financing for strategic infrastructure such as the Dangote refinery would support industrialisation, deepen African capital markets and contribute to sustainable economic growth.
“We are proud to support DPRP on this landmark transaction and look forward to mobilising capital for more transformative projects that create lasting value for Africa,” Tiemtoré said.
The $1bn underwriting programme represents a significant step in preparations for the refinery’s planned IPO and could provide a broader pool of institutional investors with an opportunity to participate in the company’s future growth.
