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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.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in developing countries. We create opportunity for people to escape poverty and improve their lives. We do so by providing financing to help businesses employ more people and supply essential services, by mobilizing capital from others, and by delivering advisory services to ensure sustainable development. In a time of global economic uncertainty, our new investments climbed to a record $18 billion in fiscal 2010. For more information, visit
www.ifc.org
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About Jordan Phosphate Mines Co.
Jordan Phosphate Mines Company (JPMC) is a Jordan-based public shareholding company engaged in exploiting, mining, producing and marketing phosphate rock and fertilizers in Jordan. The Company operates in three mining locations in the central and southern parts of Jordan, namely Al Hassa, Al Abiad, and Eshidiya mines. It produces seven million tons of phosphate rock annually. JPMC owns and operates a complex in Aqaba that produces Phosphoric Acid, Di-Ammonium Phosphate, and Aluminum Fluoride. The Company holds capital shares in Indo-Jordan Chemicals Company Limited and Nippon Jordan Fertilizer Company Limited. For more information, visit
www.jordanphosphate.com
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About Indian Farmers Fertilizer Cooperative
IFFCO is the largest producer and marketer of fertilizers in India, with installed fertilizer capacity of about 8.5 million tons, including 4.3 million tons per annum of phosphate fertilizer capacity, the largest in India. It was established in 1967 by the Government of India but by 2004 the government had fully divested its equity to over 39,000 cooperative societies and 26 marketing federations spread across the country, representing over 50 million individual farmers. For more information, visit
www.iffco.in
About European Investment Bank
The European Investment Bank (EIB) is the long term financial institution of the European Union (EU). Its shareholders are the 27 Member States of the EU.
EIB, as the first financial investor in Mediterranean region, focuses on strategic projects that are able to bring visible changes to local economies. The Bank is supporting Jordan’s drive towards a competitive and modern economy. Since 1978, EIB has provided over $ 1.2 billion for projects in the industrial, energy, water and transport sectors and to help develop the private sector. Investment in the industrial sector is aimed at adding value to local resources while increasing employment opportunities for a young and skilled population and providing high-quality products that comply with regional and international standards.
www.bei.org
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