This week, FMO invested in Indorama Eleme Fertilizer & Chemicals Ltd. (Indorama), Sub-Saharan Africa's largest urea fertilizer manufacturer. Indorama has a 1.4 million metric tonnes per annum urea manufacturing facility based in Port Harcourt, Nigeria.
Before Indorama started production, Nigeria had to import most of its fertilizer. Domestic production will help West Africa. The fertilizer industry is expected to experience long-term demand growth as increases in populations and incomes drive demand for food. Urea is the most widely used fertilizer globally and continues to grow in market share due to its high nutrient content and ease of handling and storage. Within this context, Indorama is uniquely positioned due to its execution capabilities, competitive production costs, and the strength of its management team. The company will enable Nigeria as well as the larger West African region to meet the requirements of the domestic fertilizer market, while also channeling foreign exchange into Nigeria through export of urea to South and North America.
FMO increased its exposure on Indorama by taking over US$20 million of an existing US$40 million credit line of Ecobank Nigeria. Additionally, together with The Abraaj Group and Proparco, FMO invested equity in the company on metric tonnes per annum urea manufacturing facility based in Port Harcourt, Nigeria.