By Peace Erewunmi

Dangote Petroleum Refinery and Petrochemicals has successfully completed a landmark US$2.5 billion private equity placement, in what the company described as Africa’s largest publicly disclosed primary equity private placement by value. The fundraising marks a major milestone in the refinery’s long-term expansion strategy.

According to the company, the offer was 3.7 times oversubscribed, reflecting strong investor confidence in the refinery’s growth prospects. The transaction resulted in the issuance and allotment of approximately US$2.5 billion in new equity, with participation from international and African institutional investors, sovereign-related investment vehicles, development finance institutions, strategic partners and individual investors.

Among the key investors were the Africa Finance Corporation (AFC) and India Infra Buildco, an investment vehicle facilitated by the African Export-Import Bank (Afreximbank). The company said the broad participation underscores strong confidence in its long-term strategy and operational performance.

President and Chief Executive of Dangote Industries Limited, Aliko Dangote, described the fundraising as a strategic step to deepen the refinery’s shareholder base while complementing internal cash flows and external financing. He added that the capital would support the continued expansion of the refinery and petrochemical complex, strengthen its capital structure and enhance financial flexibility for future growth.

The Managing Director and Chief Executive Officer of the refinery, David Bird, said the overwhelming investor response demonstrated confidence in the company’s leadership, operational excellence and execution capacity. The successful equity raise is expected to further accelerate the refinery’s expansion plans while strengthening Africa’s energy security and reducing dependence on imported refined petroleum products.