AFC deepens Dangote ties with stake in $2.5bn refinery deal after $300m loan repayment

Aliko Dangote

Lagos – The Africa Finance Corporation (AFC) has invested in Dangote Petroleum Refinery’s $2.5 billion private placement, extending its financial relationship with the Nigerian refinery after the full repayment of a $300 million loan.

AFC led a group of strategic investors in the refinery’s first equity raise involving investors outside its existing ownership. The institution did not disclose how much it invested or the size of its resulting stake.

The $2.5 billion placement attracted international and African institutional investors, sovereign-linked funds and development finance institutions, with demand reaching 3.7 times the initial offer.

The new capital will support the refinery’s expansion, strengthen its balance sheet and provide greater financial flexibility. Dangote plans to increase the refinery’s capacity from 650,000 barrels per day to 1.4 million barrels per day by 2028.

AFC previously provided a $300 million senior loan to Dangote Industries to help finance the development of the refinery and fertiliser complex. The loan has now been fully repaid.

“AFC’s participation in this transaction reflects our continued conviction in DPRP as one of the most consequential industrial assets on the continent,” AFC President and CEO Samaila Zubairu said.

He said AFC had supported the project through syndicated financing, working capital during commissioning and investment in its next phase of growth.

“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,” Zubairu said.

Dangote Industries Limited President and Chief Executive Aliko Dangote described the private placement as an important step in broadening the company’s shareholder base while supporting the refinery’s expansion plans.

He said the transaction would complement the company’s internal cash flows and external debt.

“This is a strategic step to deepen and further institutionalise the Enterprise’s shareholder base, while raising capital to complement our internal cash flows and external debt, as DPRP advances its expansion agenda,” Dangote said.

He said the investment also reinforced the group’s commitment to expanding refining and petrochemical capacity in Africa.

Profound commitment

“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,” he said.

DPRP Managing Director and CEO David Bird said the level of investor interest reflected confidence in the refinery’s performance and management.

“The exceptional demand we saw is a testament to our operational excellence, execution capacity, and investor confidence in DPRP’s leadership,” Bird said.

The placement was the refinery’s first capital raise involving new investors beyond its legacy shareholder base and was described as Africa’s largest publicly disclosed primary equity private placement by value.

The transaction comes separately from a recent $4 billion refinancing facility, including $2.5 billion underwritten by Afreximbank, aimed at restructuring the refinery’s debt.

AFC said it has invested more than $19 billion across 36 African countries since its establishment in 2007.

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