The Africa Finance Corporation (AFC) has led a group of strategic investors in the recently completed $2.5 billion private placement by Dangote Petroleum Refinery and Petrochemicals FZE (DPRP).
In a statement issued on Thursday, AFC said the latest investment reflects its model of providing early-stage risk capital and recycling funding into the next generation of transformative projects once assets reach stable and cash-generative operations.
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DPRP owns the approximately $20 billion integrated refining and petrochemical complex located on a 2,500-hectare site in Lagos.
The refinery has a nameplate capacity of 650,000 barrels of crude oil per day and processes crude petroleum into petrol, diesel, aviation fuel, liquefied petroleum gas, naphtha and other refined products for Nigerian, African and international markets.
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The adjoining petrochemical plant converts refinery-derived propylene into polypropylene, a key raw material used in packaging, textiles, household goods, automotive components, medical products and other manufactured goods.
As part of the Dangote Group’s Vision 2030, the company has announced plans to more than double the refinery’s nameplate capacity to 1.4 million barrels per day by 2028.
Last month, the refinery management announced that it raised approximately $2.5 billion in fresh equity after successfully concluding a private placement that was 3.7 times oversubscribed.
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The company described the placement as Africa’s largest publicly disclosed primary equity private placement by value, affirming that the transaction resulted in the issuance and allotment of about $2.5 billion in new equity and represents the refinery’s first capital raise involving external investors beyond its existing shareholder base.
According to AFC, the private placement represents DPRP’s first equity capital raise to include new investors beyond its legacy ownership structure.
The transaction was 3.7 times oversubscribed, with strong participation from international and African institutional investors, sovereign-related investment vehicles, development finance institutions and long-standing strategic partners.
AFC said its participation further deepens its longstanding partnership with the Dangote Group across some of Africa’s most significant industrial projects.
The corporation previously acted as Co-Coordinating Bank on a $3 billion syndicated loan for DPRP.
It also recently received full repayment of its foundational $300 million senior term loan to Dangote Industries Limited, which supported the refinery’s development from the concept stage.
‘Long-term partnership’
Speaking on the deal, Samaila Zubairu, president and chief executive officer of AFC, said the corporation’s participation reflected its continued confidence in DPRP as a major industrial asset in Africa.
“AFC’s participation in this transaction reflects our continued conviction in DPRP as one of the most consequential industrial assets on the continent,” Mr Zubairu said.
He said AFC had provided catalytic capital to the project from its earliest stages, including through syndicated financing and working capital support during commissioning.
“This is what long-term partnership looks like: capital that remains engaged as a project develops, becomes operational and matures into a stable, cash-generating industrial platform,” he said.
Mr Zubairu described the refinery’s development as a demonstration of the scale of industrial ambition, execution and value creation possible in Africa.
Aliko Dangote, president and chief executive officer of Dangote Industries Limited and Chairman of DPRP, described the transaction as a strategic step towards deepening and institutionalising the company’s shareholder base.
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He said the capital would complement DPRP’s internal cash flows and external debt as the company advances its expansion plans.
“This further demonstrates our profound commitment to developing domestic refining and petrochemical capacity — reducing Africa’s reliance on imported refined products and supporting the continent’s energy security,” Mr Dangote said.
David Bird, managing director and chief executive officer of DPRP, said the strong demand for the private placement reflected investor confidence in the company.
“The exceptional demand we saw is a testament to our operational excellence, execution capacity, and investor confidence in DPRP’s leadership,” Mr Bird said.
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