Announcement of Multinational Investor Group Finances Jordan Fertilizer Project on October 26, 1978

International Finance Corporation 1818 H Street. N.W • Washington, D C. 20433, lJ.S.A. 202-393-6360 IFC Press Release No. 79/14 Thursday, October 26, 1978 Multinational Investor Group Finances Jordan Fertilizer Project Investment agreements were signed today in Amman between Jordan Fertilizer Industry Company Limited (JFI) and the International Finance Corporation (IFC) and participating banks to help finance a $300 million phosphate fertilizer venture in Jordan, one of the largest of its type in the world. Financing is being provided by Jordanian, other Arab institutional investors, an international group of finan- cial institutions, and IFC. The project will be implemented by JFI, which will build a facility for process- • ing about 1.3 million metric tons a year of phosphate rock into 740,000 metric tons of di-annnonium phosphate and 105,000 tons of marketable 54 percent phosphoric acid. The plant will be located in Aqaba. It will have the flexibility to process both export grade rock and a beneficiated blend of medium grade and non-exportable lower grade rock. Equity of $135 million equivalent (JD40 million) for the project is being provided by the Government of Jordan, 26 percent; Jordan Phosphate Mines Company, 25 percent; a 17.4 percent stock offering to the Jordanian public; Arab Mining Company and Arab Petroleum Investments Corporation, 10 percent each; IFC, 5 percent; Islamic Development Bank, 4.1 percent; and the Jordan Pension Fund, 2.5 percent. Debt financing includes IFC loans of $70 million, of which $20 million is a fixed rate loan for its own account and $50 million is a floating rate loan for the account of participants. Other debt financing is being provided by: Arab Petroleum Investments Corporation, $20 million; Abu Dhabi Fund for Arab Economic Development, $15 million; Kuwait Fund for Arab Economic Development, $10 million; and the Arab Mining Co., $5 million. A French franc package of FF250 million ($59 million equivalent) is being • provided by a FF45 million French Government loan and FF205 million in French buyers' credits provided by French banks led by Banque de l'Union Europeenne and Banque Francaise du Commerce Exterieur.  - 2 - Managers of the group participating in $50 million of IFC's loan are the Arab Bank Limited and the Arab and Morgan Grenfell Finance Compa,ny Limited, Banque Arabe et Internationale ~'Investissement - B.A.I.I., Banque de l'UniQn Europeenne> Societe Generale, Union de Banques Arabes et Francaises -· U.B.A.F., and Wardley • Middle East Limited. Co-managers are Algemene Bank Nederland N. V., Arab Jordan Imnestment Bank, the Bank of Tokyo, Ltd., Banque Nationale de Paris, Bayerische Landesbank Gironzentrale, Burgan Bank S.A.K., Deutsche Bank Compagnie Financiere Luxembourg, Gulf International Bank B.S.C. and Midland Bank Limited. Included in the financial group participating in IFC's loan are the British Bank of the Middle East, Barclays Bank International Limited, European Arab Bank Limited, and the Tokai Bank Limited. Union de Banques Arabes et Francaises will a.ct as agent for the loan. The managers, co-managers and participating banks represent a wide geographical distribution: Bahrain, France, Japan, Jordan, Kuwait, Luxembourg, the Netherlands, United Arab Emirates, United Kingdom and West Germany. Financing of related infrastructure for the project, such as a water pipeline • and a marine terminal, will be provided by the Jordanian Government, the Saudi Fund for Development, the Islamic Development Bank, the British Government and the Arab Fund for Economic and Social Development. Key Jordanian staff who will manage the project have been appointed. Spie Batignolles of France is the general contractor for the project. Mitsui Toatsu Chemicals of Japan will provide assistance during project implementation and during the initial years of operations under a technical assistance agreement. The project is Jordan's first fertilizer production facility and will further utilize the country's phosphate rock deposits its most valuable known natural resource and a major source of export earnings. The venture is expected, at full production, to have export sales of about $200 million and it will create more than 600 new industrial jobs and provide training for management and technical personnel. (Any inquiries strictly relating to IFC's participation in this project should be directed to the IFC Information Office, 1818 H Street, N.W., Washington, D.C. 20433, Telephone (202) 477-5340.) •