Announcement of IFC to Invest in New Indian Fertilizer Complex April 29, 1987

Wednesday, April 29, 1987 Bruce W. McWilliams IFC Press Release No. 87/56 (202) 676-1950 IFC TO INVEST IN NEW INDIAN FERTILIZER COMPLEX The International Finance Corporation (IFC) will make a loan of DM65.2 million to finance a new nitrophosphate fertilizer complex in Bharuch, Gujarat, India. The project is in response to the Government of India's policy to raise agricultural output through increased productivity. Increased fertilizer use is seen by the Government of India as a key element in achieving this objective. The project is sponsored by Gujarat Narmada Valley Fertilizers and will utilize ammonia produced by the sponsor's adjacent ammonia and urea plants to produce ammonium nitrophosphates, calcium ammonium nitrate and both weak and concentrated nitric acid. The plant is expected to be completed by the end of 1989. Technology for the project is being supplied by BASF A.G., Adolf Planke Soehne-Chemie and Uhde GmbH of Germany. Uhde will also be prime contractor for the four plants in the complex. The project is estimated to cost a total of US$182 million. The IFC loan of DM65.2 million will be used to help finance the foreign exchange requirements of the complex. Other financing will come from a parallel foreign exchange loan of DM57.4 million from commercial banks, a public debenture issue of Rs 500 million and internal funds. IFC, an affiliate of the World Bank, is the leading private sector agency which provides equity financing and long-term loans without government guarantees to private enterprises in developing countries. - END -