PROJECT

Projects

Summary of Investment Information

Project Number

47421

Company Name

AARTI INDUSTRIES LIMITED

Date SPI Disclosed

Jun 29, 2023

Country

India

Region

South Asia

Projected Board Date

Jun 16, 2023

Environmental Category

B - Limited

Status

Active

Last Updated Date

Jun 30, 2023

Department

Regional Industry - MAS Asia & Pac

Industry

Manufacturing

Previous Events

Approved : Jun 16, 2023
Signed : Jun 17, 2023
Invested : Jun 29, 2023

Sector

All Other Chemical Product

Project Description

The proposed IFC investment involves a 10-year senior secured loan of up to US$130 million to Aarti Industries Limited (“the Company” or “AIL”). The proposed loan will be utilized towards capacity expansion, modernisation and debottlenecking initiatives (“the Project”) in Jhagadia and Dahej, in the state of Gujarat, India, which consists of: (i) expansion of nitro toluene capacities at Jhagadia, (ii) expansion of ethylation capacities at Dahej, (iii) setting up of a chloro-toluene and its derivatives plant at Jhagadia, (iv) setting up of multi-purpose plants and pilot plants for customized manufacturing at Jhagadia, and (v) expansion and debottlenecking of other existing capacities at Jhagadia and Dahej. IFC’s loan is structured as a Sustainability Linked Loan (SLL) and builds in incentives for the Company to meet agreed emission reduction targets.

Sponsor / Cost / Location

Development Impact

E&S Category Rationale / Risks and Mitigation