LAGOS, April 20 – Dangote Fertilizer Ltd is preparing to raise about $750 million through a private bond placement as it scales up production and moves closer to a public listing, Bloomberg News reported on Monday.
The company, a subsidiary of Dangote Industries owned by Aliko Dangote, is working with Bank of America and JPMorgan Chase on the potential deal. Discussions are ongoing, and a final decision has yet to be made.
The proposed private placement would target a select group of investors, allowing the company to negotiate tailored terms while limiting exposure to market volatility and disclosure requirements.
If completed, the deal would follow a growing trend of large private bond issuances in Africa, including a $1 billion raise by Sonangol earlier this year.
Dangote Fertiliser operates Africa’s largest granulated urea plant, located in Lagos, with current production capacity exceeding 3 million tons annually. The company plans to expand output further through upgrades to its existing facility and the development of a new plant in Ethiopia.
The expansion comes at a time when global fertilizer markets are benefiting from supply disruptions, particularly linked to instability in the Middle East, which has driven up prices for key inputs like urea and ammonia.
As part of its broader growth strategy, Dangote Fertiliser is also preparing for an initial public offering on the Nigerian Exchange Group later this year, which would open up the business to a wider pool of investors.
The combined strategy of private debt financing and an upcoming IPO underscores the group’s ambition to strengthen its position in both African and global fertilizer markets.
