IFC, a member of the World Bank Group, today announced an investment in Nigeria-based Indorama Eleme Fertilizer Company to support the expansion of the country’s largest fertilizer production facility. The investment will contribute to improved farm yields and agricultural productivity, which are critical to Nigeria’s long-term food security. The investment also supports South-South investment into Africa, as the Eleme’s parent company is Indorama, a long-time IFC client based in Indonesia.
The total project cost is $1.2 billion, of which $800 million will be financed by lenders. The total IFC financing package to Eleme amounts to $375 million. IFC today signed a loan for $150 million, and mobilized another $75 million through a syndicated B loan with the Bank of India. The IFC financing also mobilized an additional $150 million in parallel loans from other development finance institutions---the Belgian Investment Company for Developing Countries, the Commonwealth Development Corporation of the UK, Germany’s DEG, and FMO of the Netherlands.
Manish Mundra, Chief Executive Officer of Eleme, said, “IFC’s support for this project has helped to provide direct financing and mobilize significantly more to commence our fertilizer operations. With a growing population and limited available arable land, fertilizers are increasingly important to improving crop yield and food supply in Nigeria.”
Carsten Mueller, IFC Senior Manager for Manufacturing, Agribusiness, and Services, said, “IFC’s investment in Indorama Eleme Fertilizer adds value and makes use of existing natural resources, helping Nigeria expand its manufacturing base while improving food security. Indorama has a proven execution capacity for large-scale manufacturing operations and with our long relationship and shared commitment to Nigeria’s development, we welcome this new partnership to support further expansion in Africa.” IFC supported Indorama in its premier investment in Nigeria through Indorama Eleme Petrochemicals Company in 2007.
The project involves the construction and operation of a nitrogenous fertilizer plant at the site of Eleme’s existing petrochemicals complex in Port Harcourt, Nigeria. On completion, the facility will produce granulated urea that will be sold domestically and abroad. The project will involve the development of an 84-kilometer pipeline from the gas supplier’s facilities.
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