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According to bank provided information, the Project involves the construction and commissioning of a greenfield NPK/NPS fertilizer blending plant in Adama, Ethiopia the first privately owned compound fertilizer facility in the country. IFC is providing a financing package of up to US$17 million, comprising an IFC A Loan of US$11 million structured as a Local Currency Linked Loan in Ethiopian Birr and supported by an IDA-PSW Blended Finance Facility swap subsidy, and US$6 million mobilized from parallel lenders.
Allied Chemicals Share Company (Allied) is Ethiopia's largest domestic manufacturer of industrial chemicals, headquartered in Addis Ababa with three manufacturing facilities in Ethiopia. Founded in 2008, the company produces 18 chemical and mineral products and serves over 1,300 customers across Ethiopia, including large FMCG manufacturers and beverage companies.
IFC is exploring an advisory engagement to help reduce market-entry risk in the fertilizer sector. Key activities include a farmer outreach pilot targeting 3,000 farmers, the establishment of 21 demonstration plots across key agricultural corridors, and integration with existing WBG programs (BOOST-2 and SMART-Potato) to leverage established distribution networks. The advisory engagement will also support Allied's go-to-market strategy and agronomic quality control capacity.
The total project cost is estimated at ETB 3.69 billion (approximately US$33.98 million) and will be financed on a 50/50 debt-to-equity basis. The Sponsor is investing up to US$16.98 million in equity, and IFC is providing up to US$17 million in debt financing.
Allied Chemicals was founded by Mr. Rajesh Gupta (the Sponsor), who, along with his family, owns ~70% of the company. The other shares are held by an IFC investee fund manager, Ascent Capital, which holds ~30% of the company's shares.
| Private Actor 1 | Private Actor 1 Role | Private Actor 1 Sector | Relation | Private Actor 2 | Private Actor 2 Role | Private Actor 2 Sector |
|---|---|---|---|---|---|---|
| - | - | - | - | Allied Chemicals Share Company | Client | Industry and Trade |
For Inquiries About the Project, Contact
Local Access of Project Documentation
Allied Tower, Wessen - Abem Road,
Next to Sun Shine Real estate, Woreda 13,
Subcity Lemi kura, Addis Ababa, Ethiopia
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