Indorama Eleme Fertilizer and Chemicals Limited

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 The Indorama Group (“Indorama” or the “Sponsor”) a long-standing IFC client in several countries, is one of the world’s fastest growing groups in the petrochemical and fibres business, with global business presence in 35 countries in Asia, Africa, Europe and the Americas and more than 37,000 employees.  In August 2006, Indorama International Finance Plc, UK (“Indorama International”) purchased a 75% equity stake in what was formerly known as Eleme Petrochemicals Company Limited (now known as Indorama Eleme Petrochemicals Limited – “IEPL”) under the Nigerian federal government’s privatization plan, to which IFC had acted as advisor. IFC also invested in Indorama to implement a turnaround program for Eleme’s olefins, polyethylene and polypropylene plants (IFC Project # 24802).  In June 2016, Indorama successfully commissioned a 1.4 million metric tons per annum (MMtpa) urea fertilizer facility (including a captive ammonia facility) in Nigeria under its Indorama Eleme Fertilizer & Chemicals Limited (“IEFCL” or the “Company”) subsidiary, with investment from IFC’s own account, IFC-mobilized parallel lenders and other commercial lenders (IFC Project #30967). In March 2016 IFC made an additional investment in IEFCL to support construction of a jetty in the nearby Onne port for the export of fertilizer (IFC Project #38096). Having successfully commissioned the Line I Ammonia Urea fertilizer facility, Indorama also approved the construction of Line II, the second ammonia / urea fertilizer line, to expand the current capacity to 2.8 MMtpa; IFC provided a loan to this project as well (Project # 40420). Line II is currently under construction and is expected to be operational by 3rd quarter of 2021.  IFC is considering a further investment in IEFCL of up to US$35 million (“MM”) for its own account and up to US$115MM in parallel loans to be mobilized from commercial banks and other DFIs, for construction of a feed conditioning unit (“FCU”), an add-on gas processing facility to Line II with capacity of 160 MM standard cubic feet per day (the “Project”). The FCU will recover carbon dioxide in the gas and shall also separate heavier by-products. This will ensure the supply of gas having consistent composition to Line II, and the heavier by-product will help increase polymer production in IEPL . The Project will essentially replicate, at a larger size, the recently completed FCU unit, located next to the IFC-supported Eleme Fertilizer I urea plant (project #30967) and used for the recovery of heavier by-products from feedstock supplied by a gas supplier. The first FCU, which was completed in 2018, was installed as part of the construction of Line I and is operating satisfactorily. FCU II will be located next to the existing FCU; the two units will share several facilities including the control room and flare systems. The Project is expected to be started up in April 2022, about a year after expected Line II start-up.