IFC mulls funding Nigerian chemicals producer
The IFC is proposing a loan to Indorama Eleme Petrochemicals Limited (IEPL), an integrated petrochemical company with a liquids cracker and downstream polyethylene and polypropylene production, located in Port Harcourt, Nigeria. IEPL is the largest producer of polyolefins in West Africa, and the second-largest in sub-Saharan Africa.
The proposed investment is for up to $64 million in ’A Loan’ and up to $9 million concessional senior loan from the IFC as implementing entity of the IDA PSW Blended Finance Facility to IEPL, to finance the debottlenecking of its olefins and polyolefins plant, including installation of a new furnace that will expand production capacity, and two heat recovery steam generators to recover energy and improve steam reliability, with significant efficiency upgrades that will reduce gas consumption, increase energy efficiency and reduce CO2 emissions, at the existing Eleme Petrochemicals site in Port Harcourt.
IEPL is owned by Indorama Corporation (65%), the Nigerian National Petroleum Corporation (10%), Rivers State Government (10%), host communities (7.5%), the Nigerian Federal Government (5%) and employees (2.5%). Indorama is one of the world’s largest producers of polyester and the fastest growing global petrochemical producer with operations across 35 countries in Asia, Africa, Europe and the Americas and over 37,000 personnel. Indorama is wholly controlled and beneficially held by S. P. Lohia and his family, through the holding company, Indorama Corporation registered in Singapore.
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