$1.1bn Total investment
$35m PIDG investment
3,830 construction jobs
EAIF previously provided loans of US$48.8 million towards construction of IEFCL’s first Port Harcourt fertiliser plant, which is now operating at full capacity. The new plant will share the existing infrastructure that supplies energy, water and port facilities. The infrastructure at the adjacent port of Onne is to be expanded to meet the needs of the enlarged fertiliser plant. An additional 11km of new gas pipeline that serves the IEFCL facility has already been added to the 84km installed when the present plant was constructed.
In August 2018, EAIF achieved the financial close of its 11-year US$35 million loan to Indorama Eleme Fertilizer & Chemicals Ltd (IEFCL). The transaction is part of the financing of a US$1.1 billion expansion of the company’s existing fertiliser plant at Port Harcourt, Nigeria. The new plant is to be built alongside the existing facility. It will double the company’s output annually to 2.8 million metric tonnes.
It is a prime example of EAIF’s finance making big infrastructure projects possible and developing private banks’ confidence to invest in emerging markets.
International private sector banks have been attracted to support the project because of the track record of IEFCL and the structure of the finance, which sees debt providers like EAIF supply 11-year loans, while private banks have preferred 8-year loans. It’s a prime example of blending public and private capital to the strategic benefit of the Nigerian economy and delivering tangible benefits to millions of people.
The project directly supports the Nigerian government’s initiative to eliminate the importation of urea and to meet rising local demand for urea fertiliser. A significant first step towards Nigeria being self-sufficient in urea fertiliser, it will contribute to more efficient agriculture and higher crop yields. 3,830 people are to be hired to build the new plant. 608 people will have permanent jobs when it comes on stream. Construction is expected to take up to 37 months.
Nigeria has enormous potential to achieve agricultural self-sufficiency and food security. This is evident from the multi-fold increase in domestic fertiliser consumption after the start of Indorama's first plant. Nigeria is looking forward to contributing to Nigera's economic development