IFC invests in Indorama Eleme Fertiliser company

| February 20, 2013 | 0 Comments

Iinternational Finance Corporation, a member of the World Bank Group, on Tuesday announced an investment in Indorama Eleme Fertiliser Company, which is based in Port Harcourt, Rivers State.

It is meant to support the expansion of the country’s largest fertiliser production facility.

The investment, according to a statement, 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 $1.2bn, of which $800m will be financed by lenders.

The total IFC financing package to Eleme amounts to $375m. It signed a loan for $150m, and mobilised another $75m through a syndicated B loan with the Bank of India. The IFC financing also mobilised an additional $150m in parallel loans from other development finance institutions, including the Belgian Investment Company for Developing Countries, the Commonwealth Development Corporation of the United Kingdom, Germany’s DEG, and FMO of the Netherlands.

The Chief Executive Officer, Eleme, Mr. Manish Mundra, said, “IFC’s support for this project has helped to provide direct financing and mobilise significantly more to commence our fertiliser operations.

“With a growing population and limited available arable land, fertilisers 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 Fertiliser 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.

On completion, the facility will produce granulated urea that will be sold domestically and abroad. The project will involve the development of an 84-kilometre pipeline from the gas supplier’s facilities.


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