en.Wedoany.com Reported - Rand Merchant Bank (RMB), a division of First Rand Group, has recently led a new medium-term debt financing to support Indorama Fertiliser and Chemicals FZE Limited, a key client in Nigeria's infrastructure sector. RMB acted as coordinator and lead arranger for the $340 million refinancing, which has been signed and fully underwritten by development finance institutions and international commercial banks.

This transaction reflects RMB's strategic relationship with Indorama Group's Nigerian entity. The new financing solution offers a more competitive funding structure, aligned with Indorama's brownfield development in its Nigerian fertiliser operations. In 2025, Indorama FZE achieved a record high urea production of 2.7 million metric tons, with a capacity utilisation rate of 103%.

Chidi Iwuchukwu, Executive Director and Head of Investment Banking at RMB Nigeria, stated that this financing demonstrates RMB's commitment to providing strategic advisory and leveraging its cross-border balance sheet to support private sector investment in the domestic economy's heavy industrial manufacturing sector. Iwuchukwu noted that the financing supports Nigeria's robust non-oil export growth, with Indorama FZE continuing to play a market leadership role. According to the Central Bank of Nigeria, Indorama FZE is the country's largest non-oil exporter, accounting for over 18% of the non-oil export market in 2024. The company continues to support domestic food production and security by supplying up to 75% of the Nigerian market.

This financing involved multiple institutions and processes, aimed at structuring a more cost-competitive funding solution aligned with the client's long-term financing objectives. RMB had to allocate additional resources to complete the transaction in a timely manner alongside other lenders.

Upon the commissioning of its third production line in June 2026, Indorama will become the world's largest single-site urea producer. The company currently operates a fully integrated urea production facility, including its own natural gas pipeline, feedstock conditioning units, utilities, and dedicated storage and terminal infrastructure, ensuring seamless continuous operations.

Enyinna Anumudu, Senior Deal Maker and Head of Infrastructure Financing at RMB Nigeria, concluded that RMB is honoured to serve as lead arranger and coordinator for Indorama FZE's refinancing. By financing domestic manufacturing and heavy industrial investments in Nigeria, the company strengthens the long-term competitiveness of the Nigerian private sector in meeting domestic and international fertiliser demand, as well as supporting national food self-sufficiency.