IFC, a member of the World Bank Group, is providing a $215-million loan to Jordan-India Fertiliser Company (JIFCO) to support the construction of a latest phosphoric acid plant for the production of fertiliser in Jordan.
The plant will help boost agricultural productivity and create hundreds of jobs.
According to a statement released here, 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 in the global food chain.
Its sponsors, Jordan Phosphate Mines Company (JPMC) and India Farmers Fertiliser Cooperative (IFFCO), are both involved in sustainable efforts to increase global food supply and are important players in the economies of Jordan and India.
The JPMC Chairman and CEO, Mr Walid Kurdi, said: “IFC played an important role in mobilising 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 fertiliser market.”
The Managing Director and CEO of IFFCO, Mr U.S. Awasthi, said: “IFFCO’s strategic objective is to increase the availability of fertilisers 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 fertiliser 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.
Mr Guy Ellena, Director of IFC’s Global Manufacturing, Agribusiness and Services for Europe, Middle East and North Africa, said the company sees its long-term relationships with global leaders like JMPC and IFFCO as core to its strategy to support responsible fertiliser companies that are helping alleviate the global food crises through their products.