NIGERIA – The African Development Bank (AfDB) has signed a US$75 million loan agreement with Nigeria’s Indorama Eleme Fertilizer and Chemicals Limited to boost the country’s fertilizer production.
According to the Bank, the loan will enable Indorama to increase 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.
“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 statement read.
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.
Speaking on the development, Manish Mundra, Group Director for Africa, Indorama Corporation noted that 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 represents a pivotal moment in Nigeria’s journey towards becoming a major player in the global fertilizer market,” said Mundra.
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.
The new production line and terminal, which will help meet the growing global demand for fertilizer, are expected to create up to 8,000 direct and indirect jobs in Nigeria.
He added 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.
On his part, Ousmane Fall, Acting Director of the Industrial and Trade Development Department at the African Development Bank commended the Bank for its continued partnership with Indorama, the IFC and other lenders on this critical project.
He said that the project is aligned with AfDB’s strategic priorities to Feed Africa and Industrialize Africa while generating significant development outcomes.
The US$75 million senior loan to Indorama Eleme Fertilizer and Chemicals Limited is part of a US$ 1.25 billion facility arranged by IFC.
The financing package includes a US$215.5 million loan from IFC’s account, a US$94.5 million loan through the Managed Co-Lending Portfolio Program (MCPP), and US$940 million in parallel loans mobilized from other development finance institutions and commercial banks, such as the African Development Bank, Bangkok Bank, British International Investment, and others.
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