IFC backs $1.2bn Nigerian project

The International Finance Corporation (IFC), part of the World Bank Group, has announced a loan commitment to Nigeria’s Indorama Eleme Fertiliser Company to support the expansion of the country’s largest fertiliser production facility.

The project is worth a total $1.2 billion, with $800 million to be committed by lenders. The $375 million IFC package comprises a $150 million loan directly from the IFC, with a further $75 million mobilised through a syndicated B loan with the Bank of India.

An additional $150 million in parallel loans is coming from four other development finance institutions: the Belgian Investment Company for Developing Countries; the UK’s Commonwealth Development Corporation (CDC); DEG of Germany; and FMO of the Netherlands.

The project involves the construction and operation of a nitrogenous fertiliser plant at the site of Indorama Eleme’s existing petrochemicals complex in Port Harcourt, Nigeria. On completion, the facility will produce granulated urea to be sold domestically and abroad. The project also involves the development of an 84-kilometre pipeline from the gas supplier’s facilities.

The plant will produce 1.4 million tonnes of fertiliser annually with production due to start by the fourth quarter of 2015.

“The financing was completed in record time (under eight months) for an African project finance transaction and this is a testament to the massive efforts of the sponsor and lender teams as well as their advisors,” said Sachin Karia, who led the Allen & Overy team which provided legal advice to the Indorama Group.