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Singapore-based Indorama is closing in on a combined USD 348 mn debt package for its greenfield phosphate fertilizer complex in the Suez Canal Economic Zone (SCZone) from both the International Finance Corporation (IFC) and the European Bank for Reconstruction and Development (EBRD), according to separate disclosures from the lenders. The IFC and the EBRD are independently weighing debt packages of up to USD 174 mn each for Indorama Misr Fertilizers to bankroll the USD 525 mn facility in Ain Sokhna.
The details: The proposed loan structures would see each institution commit a USD 100 mn A-loan while mobilizing the remaining USD 74 mn through syndicated B-loans — portions of a loan funded by participating commercial banks.
About the facility: Once operational, the Ain Sokhna facility is expected to produce 600k tons per annum of phosphate-based fertilizers alongside sulfuric and phosphoric acid plants. The facility — a joint venture with state-owned Phosphate Misr — will draw an estimated 1.25 mn tons of phosphate rock annually directly from Phosphate Misr’s Red Sea Mines. Phosphate Misr holds a 15% equity stake and will claim 20% of the plant’s final production in exchange for supplying the raw phosphate rock.
BACKGROUND- The project — which has been in the works since 2023 — locked in its final contracts in April. Indorama and Phosphate Misr initially laid the groundwork for the Ain Sokhna plant as part of a broader USD 700 mn investment playbook that includes plans for a second factory dedicated to silicon metal production for solar panels.
Speaking of fertilizers
The Agriculture Ministry is facilitating talks for local fertilizer manufacturers to secure long-term supply agreements with the Philippines, with ministers from both sides set to meet next month, according to a statement from the Philippines’ Department of Agriculture. Egyptian officials have committed to providing a list of manufacturers able to supply the Philippine market, while Manila runs a feasibility study to assess potential procurement prospects.
Why it matters: The Philippines isn’t the first Asian country to knock on Egypt’s door for fertilizers since the Strait of Hormuz crisis began. In May, Indian buyers locked in 300k-350k tons of local fertilizer at a premium of USD 850-880 per ton. For our producers, locking in long-term Asian supply agreements is now a defensive play against the falling global spot prices and the 10% duty linked to the FOB value.
A fruit basket on the side: The supply talks also include a reciprocal agricultural trade push. Egyptian buyers are eyeing Philippine tuna, papaya, and pineapple, while Manila is pushing for local market access for bananas, mangoes, coconuts, durian, tobacco, pomelo, and dragon fruit. A Specific Commodity Understanding remains under negotiation between the two ministries, alongside a separate track on halal development cooperation.
In other investment news
Elsewedy Electric is pouring USD 200 mn into three new industrial projects slated to begin operations 1Q 2028, according to an EGX disclosure (pdf).
The breakdown: The largest chunk of the funds — USD 80 mn — will go toward a complex to recycle copper scrap and electronic waste, with an annual capacity of 20k tons. Another USD 65 mn is earmarked for a new factory capable of producing 15k tons of copper pipes annually for the local heating, ventilation, air conditioning (HVAC), and home appliances. The final USD 55 mn piece of the investment covers a new aluminum rod production line with a 50k-ton annual capacity that will be geared entirely toward export markets.
