Project detail - Indorama Eleme Fertilizer and Chemicals FZE

Who is our prospective customer?

An entity of the Indorama Group, Indorama Fertilizer FZE ('IFF'), is part of an integrated urea fertilizer complex near Port Harcourt, Nigeria. The complex comprises three operational urea production lines with a combined capacity of approximately 4.2 million tons per annum. The two production lines are operational under Indorama Eleme Fertilizer & Chemicals FZE ('IFZ'), while the third production line is operational under IFF and was commissioned in June 2026.

What is our funding objective?

The purpose of the financing is to fund the construction of a fourth urea production line and associated infrastructure required for the expansion, located on the same premises, as well as the construction of a natural gas pipeline. FMO's financing will form part of a broader International Finance Corporation (IFC) - led syndicated debt package totaling USD 1.25 billion and is expected to be provided as long-term senior debt.

Why do we want to fund this investment?

The project supports fertilizer availability and consumption and promotes the productive use of arable land, which increases crop yields and food security. In Nigeria, IFZ provides education services for farmers on best practices in crop production and fertilizer management, reducing input costs and waste while increasing agricultural productivity. Indorama has reached approximately 1.4 million farmers through its agronomy activities over the last decade. The expansion also supports local job creation, largely sourced from the Niger Delta region. A portion of FMO's financing will support investments that contribute to climate mitigation, thereby contributing to SDG 13, in line with FMO's methodology to determine the green finance attribution. The project is expected to receive a 74% green label, based on IFC's internal assessment, reflecting the use of best available technologies compared to other urea fertilizer plants and its contribution to reducing gas flaring through the productive utilization of domestic natural gas, in line with Nigeria's natural gas commercialization objectives. FMO's investment aims to support activities that contribute to financial flows to states where the need is greatest, contributing to SDG 10. The project is also expected to be 100% labelled Reducing Inequalities (SDG 10) due to its location in Nigeria, which is classified as a Fragile and Conflict-Affected Situation (FCS).

What is the Environmental and Social categorization rationale?

Based on the potential E&S risks associated with both the Line 4 expansion and the pipeline construction, the preliminary E&S category is A. The IFC Performance Standards applicable to Line 4 and the pipeline are PS1 to 4 and PS6, with potential applicability of PS5 to the pipeline. The project comprises three components (i) the construction and operation of Line 4; (ii) expansion of the warehouse facility at the existing port; and (iii) construction of a 65km natural gas pipeline, to meet the increased feedstock requirements. Line 4 will be developed on vacant land within the existing Indorama industrial complex, with no land acquisition anticipated. The Line 4 expansion comprises, ammonia and urea production units, related utilities, storage, product-handling, water-treatment, cooling, firefighting and other supporting infrastructure. The project will also use existing shared infrastructure associated with the wider fertilizer complex. The 65 km pipeline will form part of a wider 76 km gas-supply system. As part of the first phase, an approximately 11 km pipeline has already been installed and is operational. The new pipeline section is planned within an existing gas-pipeline Right of Way (RoW), with no additional land take. The Line 4 production facilities and the 65 km gas pipeline are being considered as components of one integrated proposed project. The existing pipeline section will be assessed in relation to the potential applicability of the IFC Performance Standards requirements for associated facilities.