The Dangote Petroleum Refinery and Petrochemicals (DPRP) has secured a $1bn underwriting package as it prepares for a planned Initial Public Offering (IPO).
The programme, arranged by Marob Strategies and Consulting DIFC Ltd in partnership with Lilium Capital Group, includes a $600m private placement that has already been completed and funded, as well as a further $400m underwriting commitment for the proposed IPO.
The Dangote Group disclosed this in a statement on Tuesday, saying the $600m private placement was underwritten and funded by Pan-African Refinery Investment SPV, a subsidiary of Lilium Capital Group.
The group said Marob Strategies and Lilium Capital would lead efforts to distribute the underwriting participation among investors across Global Africa.
The targeted investors include sovereign wealth funds, governments, institutional investors and other eligible participants.
According to the financial advisers, the transaction has attracted significant interest, reflecting increased institutional demand for major African assets with the capacity to deliver long-term economic returns.
They said the programme could also boost intra-African investment flows and contribute to the development of a more integrated continental capital market in line with the objectives of the African Continental Free Trade Area.
President and Chief Executive Officer of Dangote Industries Limited, Aliko Dangote, described the financing arrangement as a major milestone for the refinery and Africa’s capital markets.
“This is an important milestone for DPRP and for African capital markets,” Dangote said.
He said the completed private placement and the additional $400m underwriting commitment reflected investor confidence in the refinery’s strategic importance.
According to him, the transaction would provide a broader platform for African and Caribbean sovereign wealth funds, governments and institutional investors to participate in the refinery’s growth.
“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,” he said.
Dangote added that the efforts of Marob Strategies and Lilium Capital had opened opportunities for wider participation by institutional investors across Global Africa.
Chairman of Marob Strategies, Professor Benedict Okey Oramah, said the transaction demonstrated strong investor interest in African capital market opportunities linked to strategic assets.
Oramah said the firm would now focus on distributing the underwriting participation across Global Africa while engaging sovereign wealth funds, governments, institutional investors and other eligible investors.
“As Chairman, I am very proud of the work undertaken by the management team at Marob Strategies to bring this transaction to fruition,” he said.
He added that the level of investor interest showed that there was considerable appetite for African-led transactions that provided exposure to transformative projects on the continent.
“The success of this transaction paves the way for many more such transactions in the future,” Oramah said.
For Lilium Capital Group, Chairman Simon Tiemtoré said the transaction was consistent with the firm’s strategy of linking major African investment opportunities with institutional capital in Africa and international markets.
“This mandate reflects Lilium Capital’s commitment to connecting world-class African opportunities with institutional investors across Global Africa and international markets,” Tiemtoré said.
He said mobilising long-term investment for strategic infrastructure such as the Dangote refinery would contribute to industrialisation, deepen capital markets and support sustainable economic development.
“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 added.
The $1bn underwriting programme represents a significant step in preparations for the proposed listing of the Dangote refinery and is expected to widen the pool of institutional investors with access to the strategic energy asset.
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