Indorama Eleme Fertilizer & Chemicals Limited Signs Project Financing Package for US$ 1.2 bln Greenfield Urea Fertilizer Plant

DUBAI, UAE, February 18, 2013 /PRNewswire/ --

Indorama Eleme Fertilizer & Chemicals Limited (IEFCL) has signed a financing package to construct a green field US$ 1.2 billion urea fertilizer project in Port Harcourt, Nigeria. The IEFCL project will play a large role in addressing critical Nigerian and West African requirement for economically priced fertilizers.

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Developed by Indorama Corporation Pte Ltd. (Indorama - a leading global producer of petrochemicals) and Indorama Eleme Petrochemicals Limited (Eleme - the second largest polyolefins producer in Africa), IEFCL will substitute fertilizer imports to address Nigeria and West Africa's growing demand for fertilizer by utilizing Nigeria's vast hydrocarbon reserves. Given its highly competitive cost and logistical position, IEFCL will also export urea to North American and Latin American markets.

The state-of-the-art facility will produce over 4000 metric tonnes per day of high-quality, granulated urea, an amount capable of meeting the entire domestic Nigerian demand.

"We continue to see significant growth prospects in Africa and Middle East.  After investing more than $500 million over the past several years, Indorama is now setting up the world's largest Urea plant at its petrochemical complex in Nigeria.  The investment of more than $1.2 billion includes a port and gas pipeline.  With a rich pipeline of projects, Indorama is aiming to create Africa's largest petrochemical hub in Nigeria", said Group Managing Director for Indorama Corp., Amit Lohia, adding, "IEFCL will play a key role in boosting Nigeria's crop yields going forward."

"We would like to thank everyone who has made this project possible, from the Government of Nigeria to the authorities of Port Harcourt, with special appreciation to the lead lenders IFC, Stanbic, and Standard Chartered," Lohia added.

Financing for the project includes US$ 800 million in debt and US$ 400 million in equity.

The IEFCL Project

The IEFCL project consists of 2,300 tonnes per day ammonia plant, a 4,000 tonnes per day urea plant, a urea granulation plant, and associated infrastructure & utilities. IEFCL will also construct and operate a gas pipeline. The ammonia and urea plant, both being built under a contract with TOYO Engineering Corporation, will be located within the Eleme complex in Port Harcourt, Nigeria.

SOURCE Indorama Eleme