Indorama Agro Working Capital Loan (EBRD-51011)

Countries
  • Uzbekistan
Where the impacts of the investment may be experienced.
Financial Institutions
  • European Bank for Reconstruction and Development (EBRD)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Bank Risk Rating
A
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Apr 24, 2020
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
FE INDORAMA AGRO LLC
The holder of the loan, grant, or other investment.
Sectors
  • Agriculture and Forestry
  • Water and Sanitation
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 70.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Project Cost (USD)
$ 285.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Other Related Projects
Primary Source

Original disclosure @ EBRD website

Updated in EWS Jun 11, 2020

Disclosed by Bank Apr 24, 2020


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Project Description

Project Description

According to EBRD website, it will be allocated two loans of up to US$70 million, in aggregate, to FE Indorama Agro LLC to support its capital expenditure and working capital needs.

Project Objectives

The main idea of the project is based on supporting a significant private sector investment into the cotton farming sector in Uzbekistan. It will promote mechanized cotton harvesting and bring significant environmental and operational improvements including:

  • Land leveling and alternative irrigation systems to optimize water use;
  • Effective application of fertilizers;
  • Upgrades of water delivery and melioration systems;
  • Improvement of crops stock management.

The project is expected to strengthen competitiveness and enhance economic inclusion. The project includes significant operational restructuring in crop farming to facilitate improved operational efficiency and aims to introduce internationally accredited standards similar or equivalent to the Better Cotton Initiative for sustainable cotton farming in Uzbekistan.

Investment Description
  • European Bank for Reconstruction and Development (EBRD)
Private Actors

FE Indorama Agro LLC is owned by Indorama Holdings B.V., a subsidiary of Singapore-domiciled Indorama Corporation Pte. Ltd. (IRC).

IRC is the holding company of Indorama Group, one of Asia's leading industrial conglomerates with wide interests in petrochemicals, fertilizers & related downstream businesses. IRC is wholly-owned for the benefit of Mr. S.P Lohia & his family. Indorama Group was established in 1975 in Indonesia.

Contact Information
1.ACCOUNTABILITY MECHANISM OF EBRD

The Project Complaint Mechanism (PCM) is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by an European Bank for Reconstruction and Development (EBRD)-financed project. If you submit a complaint to the PCM, it may assess compliance with EBRD's own policies and procedures to prevent harm to the environment or communities or it may assist you in resolving the problem that led to the complaint through a dialogue with those implementing the project. Additionally, the PCM has the authority to recommend a project be suspended in the event that harm is imminent. You can contact the PCM at pcm@ebrd.com or you can submit a complaint online using an online form, http://www.ebrd.com/eform/pcm/complaint_form?language=en. You can learn more about the PCM and how to file a complaint at http://www.ebrd.com/work-with-us/project-finance/project-complaint-mechanism.html.

2.Company Contact Information

Mr. Amit Jain
a_jain@indoramaglobal.com
+998 71 233 2264
www.indorama.com
11/1 Amir Temur Avenue, Mirobod district, 100100 Tashkent, Uzbekistan