19 February 2013

Nigeria: IFC Invests N56 Billion in Indorama Eleme Firm to Boost Fertiliser Production

The IFC, a member of the World Bank Group, on Tuesday 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 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 (N180 billion) of which $800 million (N120 billion) will be financed by lenders.

The total IFC financing package to Eleme amounts to $375 million (N56.25 billion).

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

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

They are the Belgian Investment Company for Developing Countries, the Commonwealth Development Corporation of the U.K., 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.

"With a growing population and limited available arable land, fertilizers are increasingly important to improving crop yield and food supply in Nigeria."

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. NAN

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