Dangote Petroleum Refinery and Petrochemicals has secured a $1 billion underwriting programme to support its planned initial public offering (IPO), a move expected to deepen African participation in the ownership of one of the continent’s largest energy assets.

The programme, structured and delivered by Marob Strategies and Consulting DIFC Ltd and Lilium Capital Group, the refinery’s co-financial advisers and structuring agents, comprises a completed $600 million private placement and a further $400 million underwriting commitment for the proposed IPO.

The $600 million private placement has been completed and funded, while the $400 million IPO underwriting commitment will be activated when the public offering begins, subject to market conditions, regulatory approvals, execution of final agreements and compliance with applicable securities laws.

Pan-African Refinery Investment SPV, a subsidiary of Lilium Capital, is the underwriter of the programme, which is designed to attract long-term investment from African and Caribbean sovereign wealth funds, governments, institutional investors and other eligible investors.

Chairman of Dangote Industries Limited, Aliko Dangote, said the milestone showed growing confidence in the refinery’s strategic importance and its role in strengthening African capital markets.

“This is an important milestone for DPRP and for African capital markets. The successful completion of the private placement, together with the $400 million underwriting commitment provided by Pan-African Refinery Investment SPV in support of the planned IPO, reflects confidence in the refinery’s strategic role,” he said.

He added that the partnership with Marob Strategies and Lilium Capital had created an opportunity for wider participation by African and Caribbean investors in the refinery’s growth story.

Also speaking, Chairman of Marob Strategies and Consulting DIFC Ltd, Prof. Benedict Okey Oramah, said the transaction demonstrated the growing appetite for African-led capital market opportunities.

“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 pointed out that the company was focused on the disciplined distribution of the underwriting participation across Global Africa, adding that investor interest reflected demand for transformational assets that would contribute to Africa’s economic development.

According to Oramah, the success of the transaction would open the door for more African capital markets deals that connect investors with strategic assets on the continent.

Also reacting to the development, the Chairman of Lilium Capital Group, Simon Tiemtoré, said the transaction aligned with the firm’s commitment to connecting major African opportunities with institutional investors globally.