Dangote Petroleum Refinery and Petrochemicals FZE (DPRP) has completed a private equity placement, raising about $2.5bn in fresh capital.
The company disclosed this in a statement on Thursday, saying the transaction is Africa’s largest publicly disclosed primary equity private placement.
fundraising marked a significant milestone in its history and reflected strong investor confidence in its long-term growth strategy and operational excellence.
According to the statement, the transaction is the refinery’s first equity funding round involving external investors beyond the company’s legacy shareholder base.
It stated that the proceeds would be deployed to support the continued expansion of the refinery and petrochemical complex, strengthen the company’s capital structure and enhance financial flexibility to pursue future growth opportunities.
The statement noted that the offering attracted broad participation from international and African institutional investors, sovereign-related investment vehicles, development finance institutions, strategic partners and individual investors.
Among the notable participants were the Africa Finance Corporation and India Infra Buildco, an investment vehicle facilitated by the African Export-Import Bank, which the company said reflected deep and diversified confidence in the refinery’s long-term prospects.
Commenting on the successful transaction, President and Chief Executive of Dangote Industries Limited and Chairman of Dangote Petroleum Refinery and Petrochemicals, Aliko Dangote, described the placement as a strategic milestone in the company’s evolution.
“This transaction represents a strategic step to deepen and further institutionalise the enterprise’s shareholder base, while raising capital to complement our internal cash flows and external funding as DPRP advances its expansion agenda.
“It also demonstrates our unwavering commitment to developing Africa’s refining and petrochemical capacity, reducing dependence on imported petroleum products and strengthening the continent’s energy security,” Aliko said.
Also commenting, the Managing Director and Chief Executive Officer of Dangote Petroleum Refinery and Petrochemicals, David Bird, said the strong investor response validated the company’s operational performance and growth outlook, adding, “The exceptional demand we witnessed is a testament to our operational excellence, execution capability and the confidence investors have in DPRP’s leadership and future potential.”
The company said the successful completion of the placement had positioned the refinery to accelerate its long-term growth strategy while strengthening Africa’s energy security through world-scale refining and petrochemical capacity.
(Ripples)