The FINANCIAL — Washington D.C./Amman/Luxembourg, June 6, 2011 — IFC, a member of the World Bank Group, is providing a $215 million loan to the Jordan-India Fertilizer Company (JIFCO) to support construction of a state-of-the-art phosporic acid plant for the production of fertilizer in Jordan, which will help boost agricultural productivity and create hundreds of jobs.
The financing includes a $90 million IFC B Loan raised from a syndicate of commercial banks including Ahli United Bank, Europe Arab Bank, Bank Muscat SOAG, Cordiant Capital and State Bank of India, Bahrain.
The plant, to be built in the city of Eshidiya, is also being financed through $120 million from the European Investment Bank (EIB) and will serve an important role for the global food chain. Its sponsors, Jordan Phosphate Mines Company (JPMC) and India Farmers Fertilizer Cooperative (IFFCO), are both involved in sustainable efforts to increase the global food supply, and are important players in the economies of Jordan and India.
JPMC Chairman and CEO, H.E. Walid Kurdi, said, “IFC played an important role in mobilizing the financial resources needed for the plant, and worked closely with the sponsors from the beginning to support the success of the project. This plant will provide an important service for both Jordan and India, as well as globally, and is the type of role JPMC would like to continue to provide as a key supplier in the world fertilizer market.”
Dr U.S. Awasti, Managing Director and CEO of IFFCO, said, “We value our relationship with IFC, which has worked with us on a number of projects and proved to be a dedicated partner. IFFCO’s strategic objective is to increase the availability of fertilizers to farmers in India, by entering into ventures with partners, thus ensuring the long-term supply of high-quality nutrients. This objective fits with our mission to deliver high quality affordable fertilizer products to Indian farmers.”
In addition to creating over 800 jobs, the new plant is designed with environmental benefits, including highly-efficient production technology that allows the local grid to use the plant’s excess production of electricity. The plant will also recycle water with high efficiency.
Guy Ellena, Director of IFC’s Global Manufacturing, Agribusiness, and Services for Europe, Middle East and North Africa, said, “JIFCO’s success is demonstrating the effectiveness of South-South investments in developing important projects that provide jobs and economic growth. We see our long-term relationships with global leaders like JMPC and IFFCO as core to our strategy to support responsible fertilizer companies that are helping alleviate the global food crises through their products.”
Philippe de Fontaine Vive, EIB Vice President responsible for Mediterranean partner countries, commented: "Our objective in supporting this project is to make a key contribution to the development and competitiveness of the Jordanian economy by combining employment opportunities, local resources, skills and expertise, as well as significant exports earnings to Jordan. I am delighted that EIB is associated with such a project."
JPMC is one of Jordan’s largest companies and an active member of the communities in which it operates, sponsoring local health projects, educational scholarships and working with local communities to boost economic development in Jordan. It is also the world’s second largest exporter of phosphate rock, a key element in fertilizer production.
IFFCO is the largest fertilizer cooperative in India, serving over 50 million farmers, supplying them with fertilizer and services for environmentally sustainable farming. IFFCO is active in providing important on-the-ground help to farmers, teaching best practices in sustainable farming and fertilizer application.
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