Fertiliser Production: IFC Invests In Indorama

The IFC, a member of the World Bank Group, has announced an investment in Nigeria-based Indorama Eleme Fertiliser & Chemicals.

It said that the investment was to support the expansion of the country’s largest fertiliser production facility.

A statement issued by IFC in Lagos said that the investment would contribute to improved farm yields and agricultural productivity which were critical to Nigeria’s long-term food security.

The IFC said that the investment would also support 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 dollars, of which 800 million dollars will be financed by lenders.

The total IFC financing package to Eleme amounts to 375 million dollars.

The statement said that IFC, had signed a loan for 150 million dollars and mobilised another 75 million dollars through a syndicated B loan with the Bank of India.

The IFC financing also mobilised an additional 150 million dollars in parallel loans from other development finance institutions.

They are 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, was quoted to have said that, “IFC’s support for  this project has helped to provide direct financing and mobilise significantly more to commence our fertiliser operations.

He said “with a growing population and limited available arable land, fertilizers are increasingly important to improving crop yield and food supply in Nigeria,” he said.

Carsten Mueller, IFC Senior Manager for Manufacturing, Agribusiness, and Services, said that the investment would help Nigeria to expand its manufacturing base, while improving food security.