Anyang Indorama Gases Secures Significant Funding for Fertilizer Expansion Project in China

Anyang Indorama Gases Secures RMB 2.4 Billion for Fertilizer Capacity Expansion

In a significant financial move, Anyang Indorama Gases Co., Ltd., a fully owned subsidiary of Singapore's Indorama Corporation, has recently finalized a long-term financing agreement worth RMB 2.4 billion (approximately USD 358 million). This funding is aimed at supporting the second phase of a fertilizer capacity expansion project located in Anyang City, Henan Province, China. The deal has been facilitated by a consortium comprising five major banks in China, marking a pivotal moment for Indorama's growth strategy in the region.

The financing was orchestrated collaboratively by OCBC Bank Limited, Bank of China Limited, Bank of Communications Co., Ltd., Bangkok Bank (China) Company Limited, and China CITIC Bank Co., Ltd. Notably, OCBC Bank Limited has taken up the role of Coordinator and Facility Agent for this agreement, while Sumitomo Mitsui Banking Corporation (China) Limited will serve as the Security Agent. The capital raised from this financing will be allocated towards the development and construction of the newly planned expansion project.

Mr. Amit Lohia, the Group Vice Chairman of Indorama Corporation, expressed that this financing arrangement signifies a crucial milestone for Indorama's ongoing global expansion efforts. He emphasized that the deal highlights the confidence shown by both international and Chinese financial institutions in the company's operational model. Following the recent acquisition of the Anyang nitrogen fertilizer business, this expansion is expected to substantially enhance Indorama's fertilizer production capabilities, thus fortifying its position in one of the world's most significant markets and contributing to the global food security agenda.

The upcoming expansion project aims to double the capacity for urea fertilizer production—starting from syngas and ammonia—potentially reaching up to approximately 2 million tonnes annually by the year 2029. Such a boost in production capacity is projected to improve the reliability of local fertilizer supplies, which is crucial for enhancing food security in the region.

Moreover, the project promises to adopt more energy-efficient production processes throughout the facility, demonstrating Indorama's commitment to not only boosting output but also prioritizing sustainability and environmental responsibility.

Chai Wei Joo, the Country Head of Indorama Corporation in China, reiterated the strategic importance of this financing made possible by trusted banking partners. He noted that the initiative significantly bolsters Indorama's industrial footprint in Henan Province, solidifying its contribution to China’s economic tapestry and national food security.

In remarks made by representatives from the collaborating banks, such as Mr. Seth Tan, Managing Director and Head of Corporate Banking at OCBC Bank, the financing was welcomed as an essential industrial investment that highlights a long-standing partnership with Indorama. Likewise, Bank of China's Senior Credit Approver Luan Lin remarked on the refreshing start of collaboration and partnership with Indorama, underlining the positive expectations for future contributions to China’s economy.

This funding arrangement represents not only an operational milestone for Indorama but also a significant step towards its broader commitments to sustainable practices and enhancement of local production capabilities.

On a global scale, Indorama Corporation reinforces its presence as a top-tier producer of essential materials, ranging from nitrogen and phosphate fertilizers to textiles and medical gloves. Founded back in 1975 in Indonesia, it has grown into a diversified industrial leader that operates across 38 countries with more than 100 sites globally, employing over 50,000 individuals. With revenues and assets exceeding USD 20 billion and USD 29 billion respectively, Indorama's major venture in Henan Province reflects its steadfast dedication towards fostering an escalating role in the agricultural supply chain and enhancing food security worldwide.

As such, the future for Indorama looks promising, not just in terms of growth through financial strategy, but also in its genuine commitment to supporting agricultural productivity and environmental sustainability through expanded fertilizer production in Henan Province.