AFC Leads $2.5bn Dangote Refinery Private Placement

Africa Finance Corporation has led a group of strategic investors in a $2.5 billion private placement by Dangote Petroleum Refinery and Petrochemicals FZE.

The investment is tied to the Dangote refinery and petrochemical complex in Lagos, a project valued at about $20 billion and built on a 2,500-hectare site. The refinery has a nameplate capacity of 650,000 barrels of crude oil per day.

Premium Times reported that AFC said the placement fits its model of providing early risk capital and recycling funds into new infrastructure projects after earlier assets become stable. Daily Post reported that the transaction was oversubscribed 3.7 times.

The reports said the fresh capital is linked to Dangote Group’s Vision 2030 plan, which aims to raise the refinery’s capacity from 650,000 barrels per day to 1.4 million barrels per day by 2028.

The refinery processes crude into petrol, diesel, aviation fuel, liquefied petroleum gas, naphtha and other refined products. Its petrochemical plant also turns refinery-derived propylene into polypropylene used in packaging, textiles, household goods, medical products and other manufactured goods.

Daily Post described the deal as the refinery’s first equity capital raise involving new investors beyond its legacy ownership. The reports said demand came from international and African institutional investors, sovereign-linked investment vehicles, development finance institutions and strategic partners.

Sources: Premium Times, Daily Post