INDORAMA ELEME FERTILIZER AND
Status: Approved investmentWhy disclosure?
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Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
Indorama Eleme Fertilizer & Chemicals Limited (“IEFCL”) is the world’s largest a single train urea fertilizer plant located in Port Harcourt, Nigeria with a capacity of 1.4mln tons per annum. Commercial operations commenced in October 2016. Sponsor is the Indorama Group.
What is our funding objective?
The purpose is to fund the construction of a second urea fertilizer plant to be located on the same premises next to the existing production line, which will expand current capacity from 1.4mln tons to 2.8mln tons per annum.
Why do we fund this investment?
The proposed project supports domestic fertilizer consumption in Nigeria and promotes the successful use of arable land which should increase yields and food security. The Company has forward linkages with the farmers that are concentrated around education of farmers on best practices on crop production and fertilizer management to help in the reduction of input cost and waste while increasing yields. Furthermore, the expansion will boost local job creation. The project is a climate friendly investment, reducing gas flaring by using natural gas for the ammonia and urea production, combined with an energy efficient design of the plant that compares with the most efficient global plants.
What is the Environmental and Social categorization rationale?
E&S category is B+ as the potential adverse E&S risks and/or impacts are generally site-specific, largely reversible and can readily be addressed through thorough Good Industry Practice mitigation measures. IFC Performance Standards 1-4 (Management, Labor, Resource Efficiency and Community) are triggered. IFC Performance Standards 5-8 are not triggered since no new land will be acquired, and while the expansion will take place within the current premises, there will be no impact on biodiversity or cultural heritage. Finally, there are no Indigenous People identified within the areas of influence of the project.
More investments
| Date | Total FMO financing |
|---|---|
| 3/8/2017 | USD 18.85 MLN |
| 2/18/2013 | USD 30.00 MLN |
| 10/1/2023 | USD 75.00 MLN |
- Region
- Africa
- Country
- Nigeria
- Sector
- Agribusiness, Food & Water
- Publication date
- 3/27/2018
- Effective date
- 6/12/2018
- Total FMO financing
- USD 40.00 MLN
- Funding
- FMO NV
-
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - B+