Indorama Goes Into $75 Million Loan Agreement With AfDB

It has been reported that Indorama Eleme Fertiliser and Chemicals Limited, a Nigerian company, and the African Development Bank have concluded a $75 million loan agreement. The bank made this announcement through an official statement on its website.

The AfDB stated that, with the successful implementation of the loan, Indorama could expand its port terminal for exports and boost its fertiliser production.

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According to the statement, the loan would promote job creation in Nigeria while assisting with food production and security in regional and global markets.

It further stated that the expansion of Indorama's Port Harcourt facilities would involve the construction of a new shipping terminal and a third urea fertiliser production line.

"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 fertilisers worldwide.

"It supports the country's agricultural sector, which accounts for a quarter of its gross domestic product and employs about a third of its labour force."

According to what was revealed, the new production line and terminal could create up to 8,000 direct and indirect jobs in Nigeria, helping meet the rising demand for fertiliser worldwide.

According to the statement, Ousmane Fall, the acting director of the AfDB's Industrial and Trade Development Department, praised the partnership.

According to Fall, the bank is pleased with its ongoing collaboration on the project with Indorama, the IFC, and other lenders.

He added that the collaboration would help Nigeria achieve major development goals and support the bank's strategic priorities of feeding and industrialising Africa.

Manish Mundra, the Group Director of Indorama Corporation for Africa, said that the fertilizer plant construction demonstrated the company's steadfast dedication to Nigeria's industrial development, economic diversification, and strategic location.

"This landmark financing represents a pivotal moment in Nigeria's journey towards becoming a major player in the global fertiliser market.

"With this third line, Nigeria is prepared to significantly ramp up its export capacity, thereby enhancing its position as a key exporter of fertiliser to Africa and the world.

"Furthermore, establishing this fertiliser plant will address critical issues such as broader food security, stimulate agricultural growth, and create employment opportunities in Nigeria," he explained.

The AfDB's loan follows a strategy to support investment in private sector development and promote real sector growth. The $75 million loan is part of an IFC-arranged $1.25 billion facility.

The financing package includes a $215.5 million loan from IFC's account, a $94.5 million loan through the managed co-lending portfolio program, and $940 million in parallel loans mobilised from other development finance institutions and commercial banks.

Some banks include the AfDB, Bangkok Bank, British International Investment, Citibank, DZ Bank, Emerging Africa Infrastructure Fund, and Rand Merchant Bank.

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