The International Finance Corporation, in collaboration with its partners, announced it has injected the sum of $1.25 billion in Indorama Eleme Fertilizer and Chemicals Company in Nigeria.
“The investment will allow Indorama to ramp up its fertilizer production and develop a port terminal for exports, supporting food production and food security across regional and international markets, while fostering job creation in Nigeria,” IFC announced last week.
The international development finance institution added that “The financing package will fund Indorama’s plans to develop a third nitrogenous urea fertilizer production line and a new shipping terminal at its operations in Port Harcourt. The new production line is expected to have an annual capacity of 1.4 million metric tons of urea, one of the most widely used fertilizers worldwide.”
Other lenders that contributed to the financing include the African Development Bank (AfDB), Bangkok Bank, British International Investment, Citibank, Deutsche Investitions- und Entwicklungsgesellschaft (DEG), DZ Bank, Emerging Africa Infrastructure Fund (EAIF), Rand Merchant Bank, Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden (FMO), Export-Import Bank of India (India Exim Bank), Export-Import Bank of Korea (KEXIM), the Standard Bank Group, Standard Chartered Bank, and the United States International Development Finance Corporation (DFC).
Indorama Eleme Petrochemical Limited (IEPL), located in Port Harcourt, Rivers State, Nigeria, is a poly-olefins producer of a range of polyethylene and polypropylene products. Initially, IEPL was a 100% subsidiary of Nigerian government owned Nigerian National Petroleum Corporation (NNPC) with the name Eleme Petrochemicals Company Limited (EPCL). When the erstwhile EPCL was privatized, under the privatization programme, the Indorama Corporation emerged as the core investor and acquired the Unit in August 2006.
“This financing demonstrates the strong collaboration and alignment of interests between the public and private sector to drive sustainable development and create value for all stakeholders. Indorama remains dedicated to playing a vital role in supporting global food security by ensuring consistent supply of high-quality fertilizers in Africa, and beyond, while contributing to Nigeria’s broader economic objectives,” Amit Lohia, Group Vice Chairman, Indorama Corporation, said.
“Reliable access to high quality fertilizer is essential for food production and food security around the world. IFC’s investment in Indorama, along with African, Asian, European, and American partners, signals our joint commitment to support the agriculture sector, Nigeria’s economy, and the expansion of Indorama, an important supplier in the global food chain,” Sérgio Pimenta, IFC Vice President for Africa, said.
