Dangote Refinery Secures $600m Funding, $400m IPO Commitment
The Dangote Petroleum Refinery and Petrochemicals has secured a $1 billion underwriting programme ahead of its planned Initial Public Offering, IPO. The programme, structured by Marob Strategies and Consulting DIFC Ltd and Lilium Capital Group, comprises a $600 million private placement that has already been completed and funded, alongside a further $400 million underwriting commitment for the proposed IPO. According to the Dangote Group, the $600 million placement was underwritten and funded by the Pan-African Refinery Investment SPV, a subsidiary of Lilium Capital Group. Marob Strategies and Lilium Capital are now coordinating the distribution of the underwriting participation across Global Africa. Their efforts include discussions with sovereign wealth funds, governments, institutional investors and other eligible investors. The advisers said investor interest has been strong, reflecting growing demand for major African assets capable of generating long-term economic value. The programme is also expected to encourage greater intra-African investment and support the development of a more integrated African capital market under the African Continental Free Trade Area. President and Chief Executive Officer of Dangote Industries Limited, Aliko Dangote, described the transaction as a major milestone for the refinery and African capital markets. He said the completed private placement and additional $400 million commitment demonstrated investor confidence in the refinery’s strategic importance and would create opportunities for wider participation by African and Caribbean sovereign wealth funds, governments and institutional investors. Chairman of Marob Strategies, Professor Benedict Okey Oramah, said the transaction demonstrated strong appetite for African-led investment opportunities involving transformative assets. Lilium Capital Group Chairman, Simon Tiemtoré, said the firm was committed to connecting major African projects with institutional investors across global Africa and international markets. He added that mobilising long-term capital for strategic assets such as the Dangote refinery would support industrialisation, strengthen capital markets and promote sustainable economic growth across Africa.
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