Dangote Petroleum Refinery & Petrochemicals FZE (DPRP) said on Tuesday that it has secured a $1 billion underwriting programme ahead of its planned initial public offering.

The refinery said in a statement that the programme comprises a completed $600 million tranche, coordinated by co-financial advisers Marob Strategies and Consulting DIFC Limited and Lilium Capital Group.

It said it would implement an additional $400 million underwriting commitment to support the IPO when launched, subject to regulatory, corporate, and market conditions.

“The programme, structured by Marob Strategies and Consulting DIFC Ltd and Lilium Capital Group, comprises a completed and funded US$600 million private placement and a further US$400 million underwriting commitment in support of the refinery’s planned IPO.

“The US$600 million private placement has been underwritten and funded by Pan-African Refinery Investment SPV, a subsidiary of Lilium Capital Group,” it said.

According to the company, Marob Strategies and Lilium Capital have been coordinating the distribution of the underwriting participation across Africa through investor engagements, with positive responses recorded.

“The response, according to the advisers, has been strong, reflecting growing institutional appetite for large-scale African assets capable of generating long-term economic value.

“The programme is also expected to catalyse significant intra-African capital flows and help pave the way towards a more integrated African capital market under the auspices of the African Continental Free Trade Area (“AfCFTA”),” the company said.

The president of Dangote Group, Aliko Dangote, described the development as “an important milestone for DPRP and for African capital markets.”

“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,” Mr Dangote added.

Marob Strategies chairman Benedict Oramah said the transaction showed growing investor interest in African-led capital markets transactions.

“Marob Strategies is now focused on disciplined distribution across Global Africa and is engaging sovereign wealth funds, governments, institutional investors, and other eligible investors,” Mr Oramah said.

Lilium Capital Group chairman Simon Tiemtoré said the company’s mandate aimed to connect Africa with global markets.