Dangote Refinery Secures $1bn Backing Ahead of Planned IPO
The programme, arranged by Marob Strategies and Consulting DIFC Ltd and Lilium Capital Group, consists of a completed and funded $600m private placement and an additional $400m underwriting commitment for the proposed IPO.
According to the Dangote Group, the $600m private placement was underwritten and funded by Pan-African Refinery Investment SPV, a subsidiary of Lilium Capital Group.
Marob Strategies and Lilium Capital are coordinating the distribution of the underwriting participation across Global Africa, targeting sovereign wealth funds, governments, institutional investors and other eligible investors.
The advisers said the transaction had attracted strong interest, indicating growing institutional demand for major African assets with the potential to generate 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, said the transaction represented a significant development for the refinery and African capital markets.
He said the successful private placement, alongside the additional $400m underwriting commitment for the planned IPO, demonstrated investor confidence in the refinery’s strategic importance.
Dangote added that the transaction would provide an avenue for wider 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 highlighted the growing appetite for African-led capital market deals that give investors access to major transformative assets on the continent.
He said Marob Strategies would focus on the disciplined distribution of the underwriting participation while continuing discussions with sovereign wealth funds, governments, institutional investors and other eligible investors across Global Africa.
Oramah added that the strong investor interest demonstrated the potential for similar African capital market transactions in the future.
Chairman of Lilium Capital Group, Simon Tiemtoré, said the mandate was consistent with the firm’s objective of connecting major African investment opportunities with institutional investors in Africa and international markets.
He said mobilising longterm capital for strategic assets such as the Dangote refinery would support industrialisation, strengthen African capital markets and contribute to sustainable economic growth.
The Dangote refinery, located in Lekki, Lagos, is one of Africa’s largest single train refineries and has a nameplate capacity of 650,000 barrels per day.
