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

Dangote Petroleum Refinery has tapped global capital markets for $750 million through a 7.5% bond issue to expand Africa’s largest refinery.

According to data from Bloomberg Terminal, the senior unsecured notes were priced at par and will mature on July 16, 2031. Structured as a Rule 144A private placement, the debt was exclusively marketed to institutional investors in the United States and other qualifying jurisdictions.

The $750 million issuance features a minimum subscription threshold of $200,000, with subsequent increments of $1,000. Interest will accrue starting July 16, 2026, and be distributed semi-annually, with the first payout scheduled for January 16, 2027. To maintain financial flexibility, the structure includes a make-whole call option through July 2028, allowing the company to redeem the notes early under specific terms before standard call provisions kick in.

The transaction was jointly arranged by a syndicate of tier-one global lenders: J.P. Morgan, Bank of America Merrill Lynch, and Standard Chartered Bank.

This robust institutional backing secures long-term dollar liquidity for the refinery exactly as it scales operations. While Dangote has not yet disclosed a specific use of proceeds—capital from such placements is traditionally used to refinance existing debt, optimise working capital, or fund capital expenditures—the timing is highly strategic.

The 650,000-barrel-per-day facility, currently Africa’s largest single-train refinery, is strongly ramping up production and expanding its export reach. It is rapidly consolidating its position as a dominant supplier of petrol, diesel, aviation fuel, and other refined products both within Nigeria and across broader regional markets.

Ultimately, the successful debt raise highlights a resilient investor appetite for prime African industrial assets, cutting through the broader macroeconomic headwinds and elevated borrowing costs currently facing emerging markets.