 has secured an additional $75 loan from the African Development Bank (AfDB).){kind=link}
Nigeria’s Indorama Eleme Fertilizer and Chemicals Limited (IEFCL) has secured an additional $75 loan from the African Development Bank (AfDB).
The Port Harcourt-based IEFCL is a member of Indorama Corporation, a global manufacturing conglomerate operating in over 25 countries across Asia, Europe, Africa and North and South America.
It is one of the projects of Indorama in Nigeria and is regarded as the world’s largest single-train fertilizer plant. Commissioned in June 2016, the plant has a production capacity of 2300 tons per day of ammonia and 4000 tons per day of granular urea.
Along with the main process plants, Indorama also has a gas pipeline to transport natural gas to the facility and an export terminal at Onne port to export urea to international markets.
Source of funding
The $75 million senior loan is part of a $1.25 billion facility arranged by the International Finance Corporation. The financing package includes a $215.5 million loan from IFC’s own account, a $94.5 million loan through the Managed Co-Lending Portfolio Program (MCPP).
This is in addition to $940 million in parallel loans mobilized from other development finance institutions and commercial banks, such as the AfDB, Bangkok Bank, British International Investment, Citibank, Deutsche Investitions- und Entwicklungsgesellschaft (DEG), DZ Bank, Emerging Africa Infrastructure Fund (EAIF).
Others are, the 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).
Why the new loan?
The AfDB said the loan follows its strategy to support investment in private sector development to promote the growth of the real sector.
The loan will enable Indorama to increase 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.
The expansion will include the development of a third urea fertilizer production line and a new shipping terminal at Indorama’s facilities 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.
Indorama’s two operational urea fertilizer lines serve Nigeria’s domestic market, supporting the country’s agricultural sector, which accounts for a quarter of its GDP and employs about a third of its labour force.
Meanwhile, the new production line and terminal, which will help meet growing global demand for fertilizer, are expected to create up to 8,000 direct and indirect jobs in Nigeria.
Who said what?
Ousmane Fall, AfDB’s Acting Director of Industrial and Trade Development Department, said the bank is proud of its continued partnership with Indorama, the IFC and other lenders on this critical project.
“It is aligned with our strategic priorities to Feed Africa and Industrialize Africa while generating significant development outcomes in Nigeria,” he said.
Similarly, the Group Director for Africa, Indorama Corporation, Manish Mundra, said: “The establishment of this fertilizer plant underscores Indorama’s unwavering commitment to Nigeria’s industrial growth, economic diversification, and leveraging its strategic geographic location.”
This landmark financing, according to him, represents a pivotal moment in Nigeria’s journey towards becoming a major player in the global fertilizer market, adding that with the addition of this third line, Nigeria is prepared to significantly ramp up its export capacity, thereby enhancing its position as a key exporter of fertilizers to Africa and the world.
“Furthermore, the establishment of this fertilizer plant will not only address critical issues such as broader food security but will also stimulate agricultural growth and create employment opportunities in Nigeria,” he said.
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