British International Investment to fund Indorama’s expansion in Nigeria

British International Investment (BII), the UK’s Development Finance Institution (DFI) and impact investor, has pledged $65mn to support Indorama Eleme Fertilizer and Chemicals’ expansion plans in Nigeria. The investment is part of a $1.25bn financing package that will allow Indorama, Sub-Saharan Africa’s leading fertilizer producer, to augment its production of agrochemicals and construct a new export terminal in Port Harcourt.

BII said the investment was made through an International Finance Corporation-led consortium that includes commercial banks, impact investors and other DFIs. This was BII’s fourth investment in Indorama since 2013, and betokens the DFI’s longstanding commitment to strengthening value chains in Nigeria’s agricultural sector and increasing the country’s export potential.

Indorama’s two operational urea fertilizer lines currently serve Nigeria’s domestic market. The investment will fund the development of the company’s third nitrogenous urea fertilizer production line, which is expected to increase its annual capacity to 1.4 million tonnes.

BII noted that Nigeria’s economy has historically relied heavily on revenue from the oil and gas sector, making it vulnerable to external shocks and the price volatility of commodities. BII said that by supporting Indorama’s expansion, it aims to accelerate Nigeria’s economic diversification and expedite the realization of the country’s National Development Plan.