Jafcco receives $45m financing facility

The financing facility will be utilized to expand and diversify the production of fertilizers and chemicals and their high value derivatives with the aim to provide products that are increasingly in demand, which will be sold locally and internationally.

The syndicate facility agreement managed by Jordan Ahli Bank (lead arranger) was signed by Jordan Kuwait Bank, Cairo Amman Bank and Commercial Bank of Jordan.

The $90m Jafcco's expansion project was launched by Venture Capital Bank (VCBank) and Jordan Phosphate Mining Company. The project is a partnership between VCBank, Jordan Phosphate Mining Company, Arab Mining Company and strategic Jordanian partners in which VCBank represents the largest contributor.

The signing ceremony was attended by Mr. Abdullatif Mohammed Janahi, Board Member & CEO of VCBank and Vice Chairman of Jafcco, commented:

"Jordan Al Abyad Fertilizers and Chemicals Company (Jafcco) succeeded to obtain the funding required to complete the expansion project, despite the current financial crisis, which led to the scarcity of facilities provided by banks, and this demonstrates the importance and feasibility of the project. We as partners have contributed 50% of financing the expansion project through equity and this syndicated finance will complete the financing plan for the project."

"The keenness of the Jordanian banks to participate in financing and supporting Jafcco's expansion plans will contribute to the achievement of the company's vision to become one of the main producers of fertilizers and Phosphate and Potash based materials in the world. The continuing demand for fertilizers in the international markets and the lack of production compared to the current demand has led to a gap between supply and demand, so the company aims to fill such a gap and at competitive prices," added Mr. Janahi.

From his side Eng. Khalid Al Manasera, the CEO of Jafcco said, "Nearly 50% of the construction work in the industrial complex was accomplished. The project which is being constructed in Al Abyad valley near the Phosphate mines, consists of five main manufacturing facilities: a plant producing sulfuric acid and, a plant for potassium sulfate (fertilizer), a plant for triphosphate and a plant for bicalcium phosphate, which is used as an animal feed, and a calcium chloride plant, which is used in drilling oil wells. It is expected that the industrial complex will start production by April of next year 2010."

Mr. Marwan Awad, the CEO of Jordan Ahli Bank, said:

"This syndicated facility reflects the keenness of Jordan Ahli Bank along with the participating banks to support the Jordanian industrial sector, especially the fertilizer and mining sector, which represents a great importance to Jordan as the Kingdom is considered one of the major exporters in the world in this area. Jordan Ahli Bank became the lead arranger because of the solid belief of all participating banks of the feasibility of the project, which will increase the competitiveness of company in the international markets, especially that the company enjoys a very capable administrative and technical cadres supported by a high demand in the global markets for the products of the company."