Eleme Petrochemicals Company Limited

completed

Eleme Petrochemicals Company Limited (Eleme or the company) was incorporated in 1988 as a 100% subsidiary of the Nigerian National Petroleum Corporation (NNPC) and started operations in 1995. Eleme is one of only two petrochemicals complexes in Nigeria (both of which are state owned). Due to operational problems (inadequate maintenance, lack of spare parts, equipment break-downs etc.) the plant has operated at a very low capacity utilization since its inception. The project is to assist Indorama International Finance Plc, UK (IIF or the Sponsor) in the privatization purchase of a 75% equity stake in Eleme and in implementing a turnaround capital investment program to return the company to profitability. The proposed transaction has two components:- Privatization Acquisition Finance (Acquisition): IIF would set up two special purpose vehicles (“SPVs”) to finance the purchase of its shares in Eleme. The first SPV (Offshore SPV) would be the main investment vehicle to own 50.3% of Eleme’s equity capital and the second SPV (Onshore SPV) would own the balance 24.7% of Eleme’s shares. The Onshore SPV would be owned by the Offshore SPV and would also have the Rivers State government as a minority shareholder. - Turn-around Capital Expenditure (Project): IIF estimates that Eleme will require a capital expenditure of $160 million towards repairs, refurbishment, modernization and working capital in order to restore the plant to full capacity utilization.