• Tuesday, May 28, 2024
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AfDB, Indorama sign $75m loan deal to boost fertiliser production

AfDB commits $5m to fight terrorism financing in West Africa

The African Development Bank, a Nigerian-based financial institution, and Nigeria’s Indorama Eleme Fertiliser and Chemicals Limited have signed a $75 million loan agreement to increase Indorama’s fertiliser production and develop a port terminal for exports.

In a statement, the loan would support food production and food security across regional and international markets while fostering job creation in Nigeria.

The expansion would include the development of a third urea fertiliser production line and a new shipping terminal at Indorama’s facilities in Port Harcourt.

“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,” the statement said.

It said the new production line and terminal, which would help meet the growing global demand for fertiliser, were expected to create up to 8,000 direct and indirect jobs in Nigeria.

Ousmane Fall, acting director of the Industrial and Trade Development Department, AfDB commended the partnership.

He said the bank was proud of its continued partnership with Indorama, the IFC, and other lenders on the project.

“The partnership aligned with the bank’s strategic priorities to feed and industrialise Africa while generating significant development outcomes in Nigeria,” he added.

According to the bank, the AfDB’s loan follows a strategy to support investment in private sector development to promote the growth of the real sector. 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 programme, and $940m in parallel loans mobilised from other development finance institutions and commercial banks,” it added.

Manish Mundra, group director for Africa, Indorama Corporation said the establishment of the fertiliser plant portrays 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 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,” he said.