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IFC gives Indorama Eleme Fertilizer $1bn loan

the International Finance Corporation, a member of the World Bank Group, has announced a $1bn loan support for Indorama Eleme Fertilizer & Chemicals Limited.

A statement issued by the bank in Abuja on Friday said the project would support Nigeria’s agricultural sector and economic diversification programme.

According to the bank, the money will help Indorama Eleme Fertilizer & Chemicals Limited, a subsidiary of Indorama Corporation, to construct a new fertilizer line that will expand its capacity for urea fertilizer to more than 2.8 million tonnes.

The bank said the IFC would directly lend $100m and mobilise an additional $850m in loans from other developmental financial institutions and commercial banks, while another $50m in financing would be made available from the IFC’s Managed Co-Lending Portfolio Programme.

Joining the IFC as Joint Mandated Lead Arrangers (including as lenders) are European Investment Bank, YES Bank, CDC Group Plc, African Development Bank, Bank of Baroda and Standard Bank.

Also supporting the financing are Standard Chartered Bank, Bangkok Bank, FMO, DEG, PIDG Company, the Emerging Africa Infrastructure Fund, PROPARCO, ICICI Bank Limited and Citibank.

The large number of participating banks signals a strong endorsement of the project, Indorama and Nigeria by the syndicated loan market lending though a blend of IFC ‘A’ and ‘B’ loans and uncovered facilities, the bank said.

The statement quoted the Chief Executive Officer, Indorama Africa, Manish Mundra, to have said that with the plant expansion, the company looked forward to providing competitively priced products in the West African sub-region and across the globe.

He stated, “Nigeria has enormous potential to achieve agricultural self-sufficiency and food security, which is evident from the multi-fold increase in domestic fertilizer consumption after the start of Indorama’s first plant. Nigeria has also become a major hub for urea exports.

“With the line two, we aim to further expand our ability to provide competitively priced and high-quality fertilizer to farmers in West Africa and across the globe. Indorama is looking forward to continue contributing to Nigeria’s economic development.”

The Vice President for Middle East and Africa, IFC, Sérgio Pimenta, said, “The IFC aims to support Nigeria’s efforts to strengthen its manufacturing base and improve stability of its financial system through greater foreign exchange earnings from exports. With Indorama Eleme, the IFC is also a partner in helping farmers in West Africa increase their food production and incomes.”