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IFFCO to raise Rs 1,500 cr debt for Jordan JV project

Press Trust of India  |  New Delhi 


Fertiliser major today said it has signed a financing agreement with (IFC) and European Investment Bank (EIB) to raise debt of $336 million (about Rs 1,500 crore) for its joint venture phosphoric acid project in Jordan.

The cooperative and (JPMC) had formed a joint venture Jordan India Fertiliser Company (JIFCO) in 2008 to set up phosphoric acid plant with an investment of $625 million.

In the JV firm, holds 52% equity, while JPMC holds 48% equity.

The annual capacity of plant is 4.75 lakh tonne. would purchase a minimum 70% of the production of phosphoric acid under a long-term agreement for domestic consumption, while JPMC would buy the balance.

"signed the project and financing agreements for the phosphoric acid project being implemented by JIFCO," the company said in a statement.

The agreements were signed by the officials of IFFCO, IFC, EIB, JPMC and "and EIB are the lead arrangers for the debt of $336 million for the project," it added.

The foundation stone for the project was laid in October, 2009, and commercial production is expected to start by mid-2013. JPMC will supply the required quantity of rock phosphate under a long term supply agreement.

"This joint venture project will provide assured supply of phosphate fertilisers to Indian agriculture for sustenance in food grains production," Managing Director US Awasthi said.

To meet the growing demand of fertilisers in India, has also established JVs in Senegal, Oman, Australia, Peru and Argentina for sourcing a part of its requirement of inputs and finished products.

In India, has five plants with annual capacity of 4.24 million tonne of urea.

With the focus on farmers' needs, has diversified into insurance, power, value-added-services in mobile telephones for farmers and other sectors through various joint ventures.

First Published: Mon, June 06 2011. 14:24 IST