Dangote Group has confirmed it will finance the construction of a proposed 700,000 barrels-per-day oil refinery in Kenya through a mix of internal cash, bond issuance, and an initial public offering.
The financing structure marks a significant step in the development of the project, which aims to expand refining capacity in East Africa.
The proposed IPO for Dangote Petroleum Refinery carries a valuation of approximately $40 billion, with the listing expected to raise up to $2 billion.
This capital raise is poised to reshape the landscape of African capital markets, offering investors a direct stake in one of the continent's largest energy infrastructure projects.
The move follows earlier reports that the group was seeking diverse funding sources to support the massive capital expenditure required for the Kenyan facility.
By combining debt and equity instruments, Dangote is attempting to balance leverage while securing the necessary funds for construction.