The Africa Finance Corporation has led a consortium of investors in a $2.5 billion equity investment in Dangote Petroleum Refinery and Petrochemicals, giving Nigeria’s largest refinery a major boost as it prepares for expansion.
Oversubscribed by 3.7 times, the private placement drew strategic investors, sovereign linked investment funds, development finance institutions, and African and foreign institutional bidders.
The News Chronicle reports that the money from the most recent fundraising will help the Dangote Group reach its Vision 2030 goal of increasing the refinery’s capacity from the present 650,000 barrels per day to 1.4 million barrels per day by 2028.
Investments, according to AFC President Samaila Zubairu, reflect trust in the transforming power of the refinery in driving African industrialization and meeting energy demands.
In addition to internally produced money and debt, Dangote Industries Limited Chairman Aliko Dangote stated the agreement would further diversify the refinery’s shareholder base and offer another source of financing.
It will also enable Nigeria to lower its reliance on petroleum imports and expand its local refining capacity.
On a 2,500-hectare site in Lagos, the refinery manufactures gasoline, diesel, jet fuel, LPG, and other petroleum products; the petrochemicals facility produces polypropylene.
The latest fundraising will enhance AFC’s footprint in the Dangote Group, having provided a $3 billion syndicated financing to the business.
