Fidelia Soriwei, Abuja
The Dangote Petroleum Refinery and Petrochemicals has secured a $1bn underwriting programme as preparations gather pace for its planned Initial Public Offering.
The funding package consists of a completed $600m private placement and an additional $400m underwriting commitment designed to support the refinery’s proposed market debut.
According to a statement issued on Tuesday, the transaction was structured by Marob Strategies and Consulting DIFC Ltd and Lilium Capital Group. The $600m private placement has already been funded and underwritten by Pan-African Refinery Investment SPV, a subsidiary of Lilium Capital Group.
The advisers said they are now coordinating participation in the underwriting programme across Global Africa, targeting sovereign wealth funds, governments, institutional investors and other eligible investors.
They noted that investor interest has been strong, highlighting growing confidence in large-scale African assets with long-term economic potential. The programme is also expected to encourage greater capital flows within Africa and support efforts to deepen continental capital market integration under the African Continental Free Trade Area framework.
President and Chief Executive Officer of Dangote Industries Limited, Aliko Dangote, described the transaction as a significant development for both the refinery and African financial markets.
“This is an important milestone for DPRP and for African capital markets,” Dangote said.
“The successful completion of the private placement, together with the $400m underwriting commitment provided by Pan-African Refinery Investment SPV in support of the planned IPO, reflects confidence in the refinery’s strategic role. The work undertaken by Marob Strategies and Lilium Capital has also created a platform for broader participation by African and Caribbean sovereign wealth funds, governments and institutional investors across Global Africa.”
Chairman of Marob Strategies, Prof. Benedict Okey Oramah, said the transaction underscored growing investor demand for African-led capital market opportunities linked to major projects on the continent.
“As Chairman, I am very proud of the work undertaken by the management team at Marob Strategies to bring this transaction to fruition. Marob Strategies is now focused on disciplined distribution across Global Africa and is engaging sovereign wealth funds, governments, institutional investors and other eligible investors.
“The level of interest confirms the appetite for African-led capital markets transactions that provide investors with access to transformative assets on the continent. The success of this transaction paves the way for many more such transactions in the future,” he said.
Also commenting, Chairman of Lilium Capital Group, Simon Tiemtoré, said the initiative aligns with efforts to connect major African investment opportunities with institutional investors globally.
“This mandate reflects Lilium Capital’s commitment to connecting world-class African opportunities with institutional investors across Global Africa and international markets.
“By mobilising long-term capital for strategic assets such as the Dangote Petroleum Refinery, we are supporting industrialisation, strengthening capital markets and contributing to sustainable economic growth across the continent.
“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”, he said.
