Dangote Petroleum Refinery and Petrochemicals has secured a $1 billion underwriting programme comprising a completed private placement and an additional commitment to support its planned initial public offering.
The programme consists of a $600 million private placement that has been underwritten and funded and a further $400 million underwriting commitment for the proposed IPO.
Marob Strategies and Consulting DIFC Ltd and Lilium Capital Group structured the programme, while Pan-African Refinery Investment SPV, a subsidiary of Lilium Capital Group, provided the underwriting and funding for the $600 million private placement.
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 response from potential investors has been strong, reflecting interest in large-scale African assets with long-term economic potential.
The programme is also expected to facilitate greater intra-African capital flows and contribute to efforts to develop a more integrated African capital market under the African Continental Free Trade Area.
Aliko Dangote, President and Chief Executive Officer of Dangote Industries Limited, said the transaction represents a milestone for the refinery and African capital markets.
According to Dangote, the completed private placement and the $400 million underwriting commitment from Pan-African Refinery Investment SPV demonstrate confidence in the refinery's strategic role.
He added that the transaction provides a platform for broader participation by African and Caribbean sovereign wealth funds, governments and institutional investors across Global Africa.
“This is an important milestone for DPRP and for African capital markets,” Dangote said.
He said the work carried out by Marob Strategies and Lilium Capital had created an avenue for wider institutional participation in the refinery.
Professor Benedict Okey Oramah, Chairman of Marob Strategies, said the transaction demonstrates investor appetite for African-led capital-market transactions that provide access to major assets on the continent.
Oramah said Marob Strategies is now focused on the distribution of the underwriting participation across Global Africa, with the firm engaging sovereign wealth funds, governments, institutional investors and other eligible investors.
He said the level of interest in the transaction shows demand for African-led investment opportunities and could support similar transactions involving transformative assets in the future.
“As Chairman, I am very proud of the work undertaken by the management team at Marob Strategies to bring this transaction to fruition,” Oramah said.
He added that the transaction's success could pave the way for additional capital-market deals involving major African assets.
Simon Tiemtoré, Chairman of Lilium Capital Group, said the mandate forms part of the firm's efforts to connect major African investment opportunities with institutional investors across Global Africa and international markets.
Tiemtoré said mobilising long-term capital for strategic assets such as the Dangote refinery would support industrialisation, strengthen capital markets and contribute to economic growth across the continent.
“This mandate reflects Lilium Capital’s commitment to connecting world-class African opportunities with institutional investors across Global Africa and international markets,” he said.
The latest financing arrangement provides additional backing for Dangote Petroleum Refinery and Petrochemicals as it prepares for its planned IPO, while expanding the potential participation of African and international institutional investors in the offering.