- Active
- Exited
This investment was made when British International Investment was named CDC Group.
Our investment
We first made a $40 million loan to the company in 2013 and followed that up with $100 million loan in 2018. Those loans were to support the construction of this fertilizer manufacturer, with the aim of helping Nigeria, which is heavily dependent on imported fertilizer, to become self-sufficient. In 2020, we provided additional debt financing of $25 million for the construction of a feed conditioning unit to be installed as part of one of Indorama’s fertiliser production lines. The unit will separate the heavier hydrocarbons from the feed gas and provide a steady, methane-rich feed gas to Indorama’s fertiliser plant. The heavy hydrocarbons are then used as a feed for production of polyolefins at Indorama Eleme Petrochemicals Ltd. The feed conditioning unit will save 70,000 tonnes of CO2 equivalent per year, recovering CO2 that would otherwise be vented.
| Impact |
|---|
|
|
|
| How? |
|---|
|
| Stakeholder | Geography | Characteristics |
|---|---|---|
| Planet |
Global |
N/A |
| Businesses and employees |
Nigeria |
Downstream employees in polyolefin value chain, assumed to be semi-skilled |
| Scale | Depth/Duration |
|---|---|
|
|
| Grid Score | Contribution |
|---|---|
|
3.63 To help us direct our investments, we use a tool called the Development Impact Grid. The Grid scores every investment we plan out of a score of four, based on two factors: the difficulty of investing in the country and whether investment in that sector will lead to jobs. |
Financial: Capital is not offered on the same terms, with long tenor being the key differentiator to the commercial bank market. |
| Risk |
|---|
|
Expected impact
The business will create 360 direct jobs and 250 indirect ones, as well as a further 3500 during the construction phase.
Health and safety is a top priority at the plant. Each group of workers is assigned an environmental health and safety (EHS) officer and first aider, and before every shift, workers attend an EHS briefing on the day’s tasks.
Extensive EHS training is also provided, including on defensive driving, working at height, rigging, crane operations, scaffolding, and safe use of tools. This focus meant that by the end of 2014, and with over seven million hours worked, the project had experienced zero fatalities and just one road traffic accident.
More importantly, with a growing population and limited available arable land, the project can support food security in Nigeria by bringing affordable fertilizers to the market that can boost crop productivity and land yields.
Environmental and social aspects
The company has a robust environmental and social management system (ESMS), particularly regarding health and safety as evidenced by the good performance to date. We are working with company and other lenders to ensure that it continues to operate in accordance with international environmental and social standards.
Key facts
- Status:
- Active
- Region
:
Since 2012, we’ve only invested in Africa and South Asia. Investments outside these regions are from our pre-2012 portfolio.
- Africa, West Africa
- Countries:
- Nigeria
- Sector
:
We have seven priority sectors. However, we continue to invest outside these sectors, largely in the most challenging regions, as new investment supporting any sector helps to underpin the private sector, and create jobs and livelihoods for people.
- Manufacturing
- Website:
- http://www.indorama.com/
- Investment type
:
We provide capital in three broad ways: direct equity, debt, and intermediated equity (principally through investment funds).
- Direct Debt
- Start date
:
For direct investments, this is the date British International Investment committed capital to the business or project.
For funds, this is the date that British International Investment committed capital to the fund.
For underlying fund investments, this is the date that the fund invested capital into the business.e
- February 2013
- Amount
:
For direct investments, this is the total amount that British International Investment has committed to the business or project (it may be a combination of equity and debt).
For funds, this is the total amount that British International Investment has committed to the fund.
- $165m
- Domicile
:
This is the investee company’s place of incorporation; or a fund’s jurisdiction.
- Nigeria
This investment was made when British International Investment was named CDC Group.
We are invested in Indorama Eleme Fertilizer & Chemicals Limited through European Financing Partners IV, which is managed by European Financing Partners.
We do not hold direct relationships with the companies that investment funds invest in. Instead, we hold relationships directly with the fund. When investing through investment funds, British International Investment takes an active role as a limited partner to the fund, working with the fund manager to ensure best practices, including in environment, social and governance matters, and investment management oversight.
Key facts
- Status:
- Active
- Region
:
Since 2012, we’ve only invested in Africa and South Asia. Investments outside these regions are from our pre-2012 portfolio.
- Africa, West Africa
- Countries:
- Nigeria
- Sector
:
We have seven priority sectors. However, we continue to invest outside these sectors, largely in the most challenging regions, as new investment supporting any sector helps to underpin the private sector, and create jobs and livelihoods for people.
- Manufacturing
- Website:
- http://www.indorama.com/
- Investment type
:
We provide capital in three broad ways: direct equity, debt, and intermediated equity (principally through investment funds).
- Intermediated investment
- Fund:
- European Financing Partners IV
- Fund Manager:
- European Financing Partners
- Start date
:
For direct investments, this is the date British International Investment committed capital to the business or project.
For funds, this is the date that British International Investment committed capital to the fund.
For underlying fund investments, this is the date that the fund invested capital into the business.e
- April 2013
- Domicile
:
This is the investee company’s place of incorporation; or a fund’s jurisdiction.
- Nigeria
This investment was made when British International Investment was named CDC Group.
We are invested in Indorama Eleme Fertilizer & Chemicals Limited through Neoma Africa Fund III, which is managed by Actis LLP.
We do not hold direct relationships with the companies that investment funds invest in. Instead, we hold relationships directly with the fund. When investing through investment funds, British International Investment takes an active role as a limited partner to the fund, working with the fund manager to ensure best practices, including in environment, social and governance matters, and investment management oversight.
Key facts
- Status:
- Active
- Region
:
Since 2012, we’ve only invested in Africa and South Asia. Investments outside these regions are from our pre-2012 portfolio.
- Africa, West Africa
- Countries:
- Nigeria
- Sector
:
We have seven priority sectors. However, we continue to invest outside these sectors, largely in the most challenging regions, as new investment supporting any sector helps to underpin the private sector, and create jobs and livelihoods for people.
- Manufacturing
- Website:
- http://www.indorama.com/
- Investment type
:
We provide capital in three broad ways: direct equity, debt, and intermediated equity (principally through investment funds).
- Intermediated investment
- Fund:
- Neoma Africa Fund III
- Fund Manager:
- Actis LLP
- Start date
:
For direct investments, this is the date British International Investment committed capital to the business or project.
For funds, this is the date that British International Investment committed capital to the fund.
For underlying fund investments, this is the date that the fund invested capital into the business.e
- October 2016
- Domicile
:
This is the investee company’s place of incorporation; or a fund’s jurisdiction.
- Nigeria
