The Dangote Petroleum Refinery and Petrochemicals has secured a $1bn underwriting programme ahead of its planned Initial Public Offering (IPO), in a move expected to broaden institutional participation in the landmark Nigerian energy project.
The programme, structured by Marob Strategies and Consulting DIFC Ltd and Lilium Capital Group, comprises a completed and funded $600m private placement and a further $400m underwriting commitment in support of the planned IPO.
In a statement on Tuesday, the Dangote Group said the $600m private placement had been underwritten and funded by Pan-African Refinery Investment SPV, a subsidiary of Lilium Capital Group.
The group added that Marob Strategies and Lilium Capital were coordinating the distribution of the underwriting participation across Global Africa, targeting sovereign wealth funds, governments, institutional investors and other eligible investors.
According to the advisers, the response from potential investors has been strong, reflecting growing institutional interest in large-scale African assets capable of generating long-term economic value.
The programme is also expected to encourage greater intra-African capital flows and contribute to the development of a more integrated African capital market under the African Continental Free Trade Area framework.
President and Chief Executive Officer of Dangote Industries Limited, Aliko Dangote, described the transaction as an important milestone for the refinery and African capital markets.
“This is an important milestone for DPRP and for African capital markets,” Dangote said.
He said the successful completion of the private placement, alongside the $400m underwriting commitment, demonstrated investor confidence in the refinery’s strategic role.
Dangote added that the transaction would create a platform for broader participation by African and Caribbean sovereign wealth funds, governments and institutional investors across Global Africa.
Chairman of Marob Strategies, Professor Benedict Okey Oramah, said the transaction demonstrated the appetite for African-led capital market deals that provide investors with access to transformative assets on the continent.
Oramah said the firm was now focused on the disciplined distribution of the underwriting participation across Global Africa while 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,” he said.
He added that the success of the transaction could pave the way for similar capital market deals involving other strategic African assets.
Also speaking, Chairman of Lilium Capital Group, Simon Tiemtoré, said the mandate reflected the company’s commitment to connecting major African investment opportunities with institutional investors across Global Africa and international markets.
He said mobilising long-term capital for strategic assets such as the Dangote Petroleum Refinery would support industrialisation, strengthen 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 marks a significant step towards the refinery’s planned IPO and could provide a broader pool of African and international institutional investors with an opportunity to participate in the future ownership and growth of the facility.