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Nigeria’s Dangote Refinery raises $2.5 bln in private placement

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Dangote Petroleum Refinery has raised $2.5 billion through a private placement

Nigeria’s Dangote Petroleum Refinery has raised $2.5 billion through a private placement as it ‌seeks to strengthen its financing structure, company executive Devakumar Edwin confirmed this Friday.

 

The capital raised ahead of a planned Initial Public Offering this year is expected ⁠to help fund the refinery’s expansion as it ramps up operations and expands in domestic and export fuel markets.

 

The 650 000-bpd refinery, which started production in 2024, has ramped up output of diesel, jet fuel, naphtha and petrol, sharply cutting Nigeria’s ‌reliance ⁠on fuel imports.

 

Last month, sources familiar with the deal told Reuters the refinery was offering 3 billion ordinary shares at $0.35 each, ⁠with demand already topping $2 billion.

 

Investors were required to subscribe for at least 1 million shares, ⁠worth $350 000, with additional purchases in blocks of 500 000 shares. The shares will ⁠be subject to a 365-day lock-up, sources said.

 

–Reuters–