AFDB Invests $75m in Indorama to Boost Fertilizer Production, Job Creation in Nigeria
The African Development Bank has signed a $75m loan agreement with Nigeria’s Indorama Eleme Fertiliser and Chemicals Limited.
The bank announced this in a statement issued on its website on Thursday.
According to AfDB, the loan will enable Indorama to increase its fertiliser production and develop a port terminal for exports.
It stated that the loan would support food production and food security across regional and international markets while fostering job creation in Nigeria.
It added that 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 AfDB’s loan follows a strategy to support investment in private sector development to promote the growth of the real sector.
The $75m loan is part of a $1.25bn facility arranged by IFC.
The financing package includes a $215.5m loan from IFC’s account, a $94.5m loan through the managed co-lending portfolio programme and $940m in parallel loans mobilised from other development finance institutions and commercial banks.
Some of the banks include the AfDB, Bangkok Bank, British International Investment, Citibank, DZ Bank, Emerging Africa Infrastructure Fund, Rand Merchant Bank, etc.
