Indorama expands with third urea plant in Nigeria

The Emerging Africa Infrastructure Fund (EAIF), a Private Infrastructure Development Group (PIDG), has committed a $30 million debt facility to Indorama, a leading producer and exporter of fertiliser.

The investment enables the construction of a new plant, port terminal, handling stations, and storage facilities in Nigeria, providing a major boost for the country’s agricultural sector, which is a crucial driver of the country and region’s economic growth.

EAIF is co-lender within a broader debt financing package arranged by the International Finance Corporation (IFC), mobilising $1.25 billion from a syndicate of impact investors, development finance solutions, and commercial banks. EAIF’s investment increases the Fund’s lending to the company to $111 million, reflecting a joint-ambition to accelerate Indorama’s growth strategy and Nigeria’s aspirations for diversification and industrialisation.

The new funding unlocks fresh capital to enable the construction of a dedicated port terminal and state-of-the-art urea fertiliser plant, anticipating an increase in its current capacity from 2.8 million metric tons to 4.2 million metric tons per annum.

Commenting on the transaction, Managing Director, Emerging Market, Fixed Income at Ninety One, the fund manager of the EAIF, Olivia Carballo, said: “Our continued support for Indorama demonstrates EAIF’s commitment to harnessing the region’s significant economic prospects. Africa’s potential for industrialisation is tremendous, and this landmark project is a testament to Nigeria’s enhanced ability to produce and export competitively priced, high-quality fertiliser to farmers in regional and international markets, which will remain a priority for years to come.”

CEO, Indorama, Munish Jindal, said: “Indorama will utilise state-of-the-art technology and adhere to stringent environmental standards to ensure optimal efficiency, product quality and sustainability. We believe that the establishment of this fertiliser will position Nigeria as a key player in the global agricultural market.