Proman, a global leader in natural gas derived products, has reached financial close on a $1.5bn investment for the financing of its 2,220 MT/day anhydrous ammonia plant in Topolobampo, Mexico, the company said earlier this month.
KfW IPEX was lead arranger of project financing, putting together a banking consortium of seven lenders and ECA coverage with Euler Hermes.
A 2020 announcement from KfW noted a total investment volume of $1.25bn, with the bank consortium contributing a total of $860m in debt capital. A considerable portion of the financing was secured by an export credit guarantee from the German government (Hermes cover).
Speaking on the announcement, David Cassidy, Chief Executive of Proman, said of the company’s presence in Mexico, “We are already a significant producer of ammonia, and this new plant will increase our annual production capacity to 2.8 million tonnes at a time when fertilizers have a critical role to play in the agricultural sector in Mexico and for global food security. We have built strong relationships with local stakeholders and communities and look forward to a long-term future in Mexico.”
Construction of the petrochemical complex will begin immediately.
Local news reports note that the project, which was initiated in 2018, faced several delays due to the COVID-19 pandemic and the revocation of its environmental authorization due to a failure by the federal Environment Ministry to consult with local indigenous communities.
