The International Finance Corporation (IFC) has announced a significant financing support of $1.25 billion for Indorama Eleme Fertiliser and Chemicals Limited in Nigeria. This investment aims to bolster fertilizer production and develop a port terminal for exports, thereby supporting food production, food security, and job creation in the country.
The financing package will enable Indorama to expand its fertilizer production capacity and construct a new shipping terminal at its operations in Port Harcourt. The addition of a third nitrogenous urea fertilizer production line is anticipated to have an annual capacity of 1.4 million metric tons, catering to growing global demand for fertilizers.
The investment comprises a $215.5 million loan from IFC’s own account, a $94.5 million loan through the Managed Co-Lending Portfolio Program (MCPP), and $940 million in financing mobilized from other development finance institutions and commercial banks. Sumitomo Mitsui Banking Corporation (SMBC), Singapore Branch, joins IFC as the joint mandated lead arranger and lender.
Additionally, various lenders, including 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), are contributing to the financing.
As part of the project, Indorama will implement a greenhouse gas (GHG) emissions strategy to reduce emissions at its petrochemical complex by 32 percent by 2026, aligning with Nigeria’s commitment to eliminate routine gas flaring by 2030.
Indorama’s expansion efforts are poised to create up to 8,000 direct and indirect jobs and support Nigeria’s agricultural sector, a significant contributor to the country’s GDP and employment.
The investment in Indorama Eleme Fertiliser and Chemicals Limited reflects IFC’s strategy to foster diversified, inclusive growth and job creation in Nigeria, across various sectors such as manufacturing, agribusiness, healthcare, infrastructure, technology, and financial services.
While the Nigerian Railway Corporation (NRC) witnessed a decline in revenue due to decreased ridership last year, there was a notable improvement in cargo movement, highlighting the potential for economic recovery and growth in the transportation sector.
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