The Dangote Petroleum Refinery and Petrochemicals has secured a $1bn underwriting programme as it prepares for a planned Initial Public Offering.

According to The PUNCH, the financing arrangement was structured by Marob Strategies and Consulting DIFC Ltd in partnership with Lilium Capital Group.

It consists of a completed and funded $600m private placement and an additional $400m underwriting commitment for the proposed IPO.

According to the Dangote Group, the $600m private placement was underwritten and funded by Pan-African Refinery Investment SPV, a subsidiary of Lilium Capital Group.

Marob Strategies and Lilium Capital are now working on distributing the underwriting participation across Global Africa, targeting sovereign wealth funds, governments, institutional investors and other eligible investors.

The advisers said the response to the programme had been encouraging, highlighting rising institutional interest in major African assets with the potential to deliver long-term economic value.

The initiative is also expected to encourage intra-African capital flows and contribute to the development of a more integrated African capital market under the African Continental Free Trade Area.

President and Chief Executive Officer of Dangote Industries Limited, Aliko Dangote, described the transaction as a major development for the refinery and African capital markets.

“This is an important milestone for DPRP and for African capital markets,” Dangote said, adding that the transaction reflected confidence in the refinery’s strategic role and created a platform for broader participation by African and Caribbean sovereign wealth funds, governments and institutional investors across Global Africa.

He added, “The successful completion of the private placement, together with the $400m underwriting commitment provided by Pan-African Refinery Investment SPV in support of the planned IPO, reflects confidence in the refinery’s strategic role. The work undertaken by Marob Strategies and Lilium Capital has also created a platform for broader participation by African and Caribbean sovereign wealth funds, governments and institutional investors across Global Africa.”

Chairman of Marob Strategies, Professor Benedict Okey Oramah, said the deal highlighted the growing interest in African-led capital market transactions that provide investors with access to major assets on the continent.

“As Chairman, I am very proud of the work undertaken by the management team at Marob Strategies to bring this transaction to fruition. Marob Strategies is now focused on disciplined distribution across Global Africa and is engaging sovereign wealth funds, governments, institutional investors and other eligible investors.

“The level of interest confirms the appetite for African-led capital markets transactions that provide investors with access to transformative assets on the continent. The success of this transaction paves the way for many more such transactions in the future,” he said.

Chairman of Lilium Capital Group, Simon Tiemtoré, said the mandate was consistent with the firm’s objective of linking major African investment opportunities with institutional investors in Global Africa and international markets.

“This mandate reflects Lilium Capital’s commitment to connecting world-class African opportunities with institutional investors across Global Africa and international markets.

“By mobilising long-term capital for strategic assets such as the Dangote Petroleum Refinery, we are supporting industrialisation, strengthening capital markets and contributing to sustainable economic growth across the continent.

“We are proud to support DPRP on this landmark transaction and look forward to mobilising capital for more transformative projects that create lasting value for Africa,” he said.