The project company is Indorama Eleme Fertilizer & Chemicals Limited (IEFCL), which is owned 51% by Indorama Eleme Petrochemicals Limited (or ‘Eleme Petrochemicals’), and 49% by the Indorama Group.

Eleme Petrochemicals is the largest producer of polyolefins in West Africa, and the 2nd largest in Africa. It is owned by the Indorama Group 65%, Nigerian National Petroleum Corporation (NNPC) 10%, Rivers State Government 10%, Host Communities 7.5%, the Nigerian Federal Government 5%, and Employees 2.5%.

Indorama Group is a leading manufacturer of petrochemicals and associated downstream products shipped to over 100 countries across the globe. Indorama employs over 21,600 personnel, and has 40 manufacturing sites in 20 countries. Indorama is wholly controlled and beneficially held by Mr. S. P. Lohia and his family.

The Fertilizer complex will cost US$1.2 billion.
Details of the proposed investment are as follows (i) An ‘A-loan’ of US$150m for IFC’s own account (ii) A mobilization tranche of US$150m comprising of an IFC B-loan and parallel loans (under IFC’s Master Corporation Agreement - MCA) , and (iii) a potential equity investment

150.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	150.0
Equity

* These investment figures are indicative

The Fertilizer complex will be located within the existing Eleme Petrochemicals premises, which is one of the major large scale industrial units in the oil belt of Port-Harcourt, Rivers State, in the South-Southern region of Nigeria. Eleme Petrochemicals complex is currently self- sufficient in offsite, utility, storage, administration, safety, and commercial activities. The complex site covers a fully developed, and secured area of c.361 hectares. The new fertilizer plant will require about c.38 hectares.

The expected development benefits from the project are:
(i) Food Security: Contribution to the development of the agricultural sector and unlocking its potential, thereby reducing Nigeria''s dependence on imports. The project will increase fertilizer production which promotes intensive agricultural production, and will improve crop yields.
(ii) Economic Diversification: Increased value addition to a natural resource in Nigeria (i.e. natural gas), and advancement of the downstream chemicals sector. The project supports regional fertilizer capacity in Sub-Saharan Africa, which is a growing market heavily reliant on imports.
(iii) Employment: Creation of significant direct and indirect employment opportunities.
(iv) SME Development: Removal of obstacles that prevent farmers with small land holds from efficiently optimizing their crop yields and maximizing their incomes.
(v) Current Account Impact: Foreign exchange savings by import substitution.
(vi) Demonstration Effect: The project is expected to have a positive signal for other foreign investors on the government''s commitment for economic diversification and agricultural transformation project

Long-term Finance and Mobilization:
The Project is capital intensive and requires very long tenors and structured repayments. IFC can provide required long-dated senior debt, tailor-made repayment structures, and help mobilize participant banks and parallel lenders in the structure.

Honest Broker:
IFC will play an honest broker role between Eleme, Indorama, and the Government of Nigeria.

Provision of technical and E&S expertise:
IFC has been sharing its technical and environmental and social expertise to ensure the Project is prepared and operates under the IFC performance standards and internationally accepted technical standards.

Long-term Partner:

The Sponsors view IFC as a long-term partner and IFC supported the Sponsor''s growth initiatives in various markets globally since the 1990s. The IFC was also was involved in Indorama''s first investment in Nigeria in 2006 through the Eleme Petrochemicals plant. The Sponsor views IFC''s continued involvement in its projects as a strategic relationship in developing large-scale projects in emerging and frontier markets.

This is Category B project according to IFC’s Environmental and Social Review Procedure. The Project is expected to have limited environmental and social impacts that will be site-specific and temporary, and none are expected to be significant. The new plant will be located within the confines of an existing petrochemicals site and the cumulative impacts and risks of operating the new project components allied to the existing operations will not pose significant risks to the surrounding environment or communities. Further, the identified risks and impacts can be avoided or mitigated by adhering to recognized performance standards, operating procedures, guidelines and design criteria.