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

• Deal oversubscribed 3.7 times

Africa Finance Corporation (AFC) has led a group of strategic investors in a landmark $2.5 billion private placement by Dangote Petroleum Refinery and Petrochemicals FZE (DPRP), in a major capital injection into Nigeria’s largest integrated refining and petrochemical project.

In a statement from AFC, they stated that the transaction, which represents DPRP’s first equity capital raise involving new investors beyond its legacy ownership, was oversubscribed 3.7 times, reflecting strong demand from international and African institutional investors, sovereign-related investment vehicles, development finance institutions, and strategic partners.

The fresh capital comes as Dangote Group advances its Vision 2030 plan to more than double the refinery’s nameplate capacity from 650,000 barrels per day to 1.4 million barrels per day by 2028.

The approximately $20 billion Dangote refinery and petrochemical complex is located on a 2,500-hectare site in Lagos and is designed to process 650,000 barrels of crude oil daily into petrol, diesel, aviation fuel, liquefied petroleum gas, naphtha, and other refined products for the Nigerian, African and international markets.

The adjoining petrochemical plant converts refinery-derived propylene into polypropylene, a key input for packaging, textiles, household goods, automotive components, and medical products.

The latest investment further strengthens AFC’s longstanding partnership with Dangote Group, which spans some of Africa’s largest industrial projects.

AFC previously acted as Co-Coordinating Bank on a $3 billion syndicated loan for DPRP and recently received full repayment of its foundational $300 million senior term loan to Dangote Industries Limited, which supported the refinery’s development from the concept stage.

Commenting on the transaction, AFC President and Chief Executive Officer, Samaila Zubairu, said the corporation’s participation reflected its continued confidence in the refinery as one of Africa’s most significant industrial assets.

Zubairu stated, “AFC’s participation in this transaction reflects our continued conviction in DPRP as one of the most consequential industrial assets on the continent.

“Since the refinery’s earliest stages, AFC has provided catalytic capital to help move the project from concept to reality from our role in the syndicated financing and our support for working capital during commissioning to this investment in its next phase of growth.

“This is what long-term partnership looks like: capital that remains engaged as a project develops, becomes operational and matures into a stable, cash-generating industrial platform. DPRP’s success is a powerful demonstration of the scale of ambition, execution and value creation that is possible in Africa.”

Chairman of DPRP and President/Chief Executive of Dangote Industries Limited, Aliko Dangote, described the transaction as a strategic move to broaden the company’s shareholder base while supporting its expansion plans.

Dangote said, “This is a strategic step to deepen and further institutionalise the Enterprise’s shareholder base, while raising capital to complement our internal cash flows and external debt, as DPRP advances its expansion agenda.”

He said the transaction also reinforced the group’s commitment to expanding domestic refining and petrochemical production.

“This further demonstrates our profound commitment to developing domestic refining and petrochemical capacity reducing Africa’s reliance on imported refined products and supporting the continent’s energy security,” Dangote stated.

Managing Director and Chief Executive Officer of DPRP, David Bird, said the strong subscription demonstrated investor confidence in the refinery’s operations and management.

Bird stated, “The exceptional demand we saw is a testament to our operational excellence, execution capacity, and investor confidence in DPRP’s leadership.” (Thisday)