What Nigerian project first reveals about South Africa's financing future

Author: Gemma Varriale | Published: 4 Mar 2013

KEY TAKEAWAYS

· Nigeria’s ground-breaking $1.2 billion financing of the Indorama nitrogenous fertiliser complex represents a significant landmark for project finance in Africa;

· Upon being commissioned, the plant is expected to be one of the largest fertiliser plants in the world;

· It is hoped the Indorama project will be a catalyst for similar deals in future, encouraging the development of downstream industries in Nigeria;

· The lender group included two international banks, leading Nigerian banks, as well as development finance institutions;

· Deal counsel expect foreign sponsors of future Nigerian project finance deals to be based in emerging economies.

The groundbreaking $1.2 billion financing of a Nigerian fertiliser project could mark the start of something big in Nigeria’s petrochemicals sector, sparking a wave of similar projects.

Located in Rivers State Nigeria, the Indorama Eleme project is expected to be commissioned by late...