The five-year bond is the latest transaction involving the Dangote group of companies, which has raised a combined USD 1.5 billion this year alone.
Dangote Petroleum Refinery and Petrochemicals FZE (DPRP) has concluded its maiden international bond offering.
International law firm Clifford Chance acted as legal counsel to DPRP on the offering, which took the form of a private placement transaction. A total USD 750 million in senior notes was issued, yielding a 7.5% coupon and maturing in 2031.
DPRP is part of the Nigerian-headquartered Dangote Group, which has 30,000 employees and was founded by entrepreneur, president and chief executive Aliko Dangote. It is active across the Sub-Saharan African energy, petrochemicals, fertiliser and sugar refining sectors, and beyond.
The DPRP transaction follows an earlier offering by its fertiliser division in April, which raised a similar amount.
DPRP intends to use the proceeds to further its strategic aims and afford the company greater financial flexibility, with a view to a future initial public offering (IPO).
In a statement, Michael Dakin, the lead Clifford Chance partner on the transaction, said: “The DPRP bond offering, together with the USD 750 million and USD 600 million private placements completed earlier this year for Dangote Fertilizer and Greenview Fertiliser, on which we also advised the Group, demonstrates the breadth of the Dangote Group’s financing programme and its continued engagement with international investors. We value our longstanding relationship with the Dangote Group and look forward to supporting its future growth and strategic objectives.”
DPRP took advice from a London-based Clifford Chance team headed by partners Michael Dakin and Johannes Juette, assisted by senior associate Yash Ranade, associate Geoffrey Adonu and law clerk Saherish Surani. Broader financing advice and senior relationship management was provided by Edmund Boyo in Dubai and Abu Dhabi-based Stephen Chance, who also acted as financial advisers to DPRP’s wider corporate group.
Last year in July, Istanbul-based energy company Aksa Energy retained White & Case and Turkish law firm GKC Partners to raise USD 150 million, to fund development of energy facilities in Côte d’Ivoire, Ghana and Senegal.
