Dangote Refinery raises $750m in international bond market at 7.5%

Dangote Petroleum Refinery has raised $750 million through an international bond offering carrying a 7.5 percent fixed coupon, marking another milestone in the company’s access to global capital markets as it expands operations at Africa’s largest refinery.

According to bond details seen on the Bloomberg Terminal, the notes were issued at par (100) with a 7.5 percent yield and will mature on 16 July 2031. The senior unsecured bond was structured as a Rule 144A private placement for institutional investors in the United States and other eligible markets.

The transaction has an aggregate issuance of $750 million, with a minimum subscription of $200,000 and increments of $1,000. Interest will be paid semi-annually, with the first coupon payment due on 16 January 2027, while interest begins accruing from 16 July 2026.

The bond also includes a make-whole call option until July 2028, allowing the refinery to redeem the notes early under specified conditions before standard call provisions apply.

The offering was jointly arranged by J.P. Morgan, Bank of America Merrill Lynch and Standard Chartered Bank, highlighting strong backing from leading international investment banks.

The successful fundraising provides Dangote Refinery with fresh access to long-term dollar financing at a time when the company is ramping up refining operations, expanding exports of refined petroleum products and strengthening its position in regional fuel markets.

Although the company has yet to disclose the intended use of the proceeds, such international bond issuances are typically deployed to refinance existing debt, fund capital expenditure, strengthen working capital or support expansion projects.

The refinery, with a nameplate capacity of 650,000 barrels per day, is Africa’s largest single-train refinery and has become a major supplier of petrol, diesel, aviation fuel and other refined products to Nigeria and several African markets.

The issuance also reflects continued investor appetite for one of Africa’s largest industrial assets despite elevated borrowing costs and broader macroeconomic challenges across emerging markets.