IFC weighs $73m loan for SG-domiciled Indorama’s Nigerian petrochemicals business

Indorama Eleme Petrochemicals Limited, Nigeria.

International Finance Corporation (IFC), the financial arm of the World Bank Group, has proposed a $73 million funding for Singapore-domiciled chemical group Indorama Corporation’s Nigeria-based venture.

IFC might provide up to $64 million in A loan and up to $9 million in a concessional senior loan for Indorama Eleme Petrochemicals Limited (IEPL) in Port-Harcourt, Nigeria.

The planned financing is for the debottlenecking of IEPL’s olefins and polyolefins plant, including the installation of a new furnace that will expand production capacity, and two heat recovery steam generators (HRSG) to recover energy and improve steam reliability.

The blended finance co-investment “enhances the project economics and enables an investment in an HRSG technology that is not market practice in the country,” IFC said in its proposal dated March 19.

The level of subsidy provided by the blended concessional finance co-investment is estimated to be 3.4% of the total HRSG cost of $19.8 million, it added.

IEPL is the largest producer of polyolefins in West Africa and the second largest in Sub Saharan Africa, according to IFC.

The business is 65% owned by Indorama Corporation, 10% owned by Nigerian National Petroleum Corporation, and the balance is held by Rivers State Government, Host Communities, the Nigerian Federal Government, and its employees.

Last year, IFC also proposed a $150 million loan to Indorama’s Thai unit Indorama Ventures Global Services Limited, as well as another $60 million loan to Indorama’s cotton farming initiatives in Uzbekistan.

Indorama was rooted in 1975 as Indorama Synthetics in Indonesia by ML Lohia and his son SP Lohia. The firm has over 20 manufacturing sites in eight countries manufacturing a multitude of products including nitrogen fertilisers, phosphate fertilisers, polyethylene, polypropylene, polyester, textiles, cotton fibre, and medical gloves.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

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  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.