Dangote Refinery Secures $2.5 Billion Deal to Increase Africa’s Fuel Supply
Nigeria’s Dangote mega-refinery announced Thursday that it has obtained $2.5 billion in private financing to fuel its development aspirations as it expands its refining business into East Africa. The private equity investment gives investors a stake in the continent’s largest refinery, which opened two years ago and has a capacity of 650,000 barrels per day.
Until the completion of this financing round, only the Nigerian government-controlled oil monopoly NNPCL held a share in the company, accounting for around 7.2 percent. The investment is “believed to be the largest publicly disclosed private investment in Africa,” Dangote Petroleum Refinery and Petrochemicals stated.
According to analysts, the private placement is a forerunner to the initial public offering, which will allow the public to participate in the refinery later this year. Aliko Dangote, the firm’s founder and Africa’s richest man, stated that the private placement will provide additional money to supplement internal cash flows and external finance while the company pursues its expansion agenda.
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