Anyang Indorama Gases Co., Ltd., a wholly owned subsidiary of Indorama Corporation Pte. Ltd., Singapore (“Indorama”), has signed an RMB 2.4 billion (c. US$358 million) long-term loan facility with a consortium of five leading banks in China to finance its Phase II fertilizer capacity expansion project in Anyang City, Henan Province, China. The financing represents an important milestone in Indorama’s brownfield expansion in China following its acquisition of the Anyang nitrogen fertilizer business earlier this year. This expansion project is expected to double the company’s urea fertilizer capacity (starting from syngas and ammonia) to c. 2 million tonnes per annum by 2029. It will further strengthen the reliability of domestic fertilizer supply contributing to increased food security, with more energy-efficient production processes across the site.
This long-term financing was provided by OCBC Bank Limited, Bank of China Limited, Bank of Communications Co., Ltd., Bangkok Bank (China) Company Limited and China CITIC Bank Co., Ltd. OCBC Bank Limited acted as Coordinator and Facility Agent, and Sumitomo Mitsui Banking Corporation (China) Limited acted as Security Agent. This financing will be used to partially fund the development and construction of the expansion project.
Mr. Amit Lohia, Group Vice Chairman, Indorama Corporation, said: “This transaction is an important milestone in Indorama’s growth strategy and reflects the confidence of leading international and Chinese financial institutions in our business. Building on our acquisition of the Anyang business, it strengthens our fertilizer platform in one of the world’s most important markets and reinforces our commitment to supporting food security. We deeply value our banking partners’ support and look forward to advancing Indorama’s continued global growth.”
Mr. Chai Wei Joo, Country Head (China), Indorama Corporation, said: “We deeply value the trust and partnership of our banking partners in China. This financing supports the expansion of our fertilizer capacity in Henan Province, reinforcing Indorama’s role as a key industrial contributor to China’s economy and national food security. It is an important step in our continued growth in China, and we look forward to investing further in the country.”
Mr. Seth Tan, Managing Director & Head of Corporate Banking China, OCBC Bank Limited, said: “We are pleased to participate in and coordinate this financing alongside our partner banks in support of Indorama’s investment in Henan Province. The project represents an important industrial investment that will contribute to increased fertilizer production and domestic supply. Building on our 14-year partnership with Indorama, we are pleased to further strengthen our support for the Group in China and look forward to deepening our relationship across China and Asia.”
Mr. LUAN Lin, Senior Credit Approver, Bank of China Limited - Suzhou Branch, said: “We are delighted to begin our relationship in China with Indorama through this financing. As a significant investor in Henan Province, Indorama is making an important contribution to the Chinese domestic economy as well as contributing to food security, and we look forward to supporting the Group’s growth in China in the years ahead.”
Bank of Communications Co., Ltd. said: “This loan signing marks the beginning of our partnership with Indorama, and we are pleased to support its investment in Anyang. The project will help strengthen domestic fertilizer supply and regional industrial development, and we look forward to further deepening our cooperation with the Group.”
Mr. Sitthichai Jiwattanakul, CEO, Bangkok Bank (China) Company Limited, said: “We are delighted to deepen our decade-long partnership with Indorama Group as it pursues its strategic expansion in China. This financing reflects our confidence in the Group’s vision and our ongoing support for its growth both regionally and globally.”
Mrs. Huang Qin, China CITIC Bank Co, Ltd.– Anyang Branch, said: “We are pleased to establish our relationship with Indorama through this landmark financing. The project brings valuable investment and capacity to Henan Province, and we look forward to building a strong, long-term partnership with the Group.”