EuroChem secures project financing for ammonia project in Russia
Zug, Switzerland, 29 December, 2015 – EuroChem Group AG (hereinafter “EuroChem”, “Group” or “Company”), a leading global agrochemical company, today announces that its EuroChem Northwest subsidiary has signed a loan agreement with a club of banks for the SACE-covered project financing of an ammonia project in Russia.
The facility, which is structured as a non-recourse EUR 557 million 13.5 year project finance facility was signed on 22 December, 2015. The facility benefits from an insurance cover provided by the Italian Export Credit Agency SACE for political and commercial risks of the project.
The Mandated Lead Arrangers of the facility included Crédit Agricole CIB, HSBC Bank PLC, ING Bank (a Branch of ING-DiBa AG), Société Générale, UniCredit Bank Austria AG. ING Bank acted as the documentation agent and the coordinator, HSBC acted as the due diligence agent and the coordinator and UniCredit Bank AG acted as the facility and the security agent. UniCredit S.p.A acted as the SACE agent.
Andrey Ilyin, EuroChem Finance Director commented, “We are pleased to see the continued support from our banking relationships and SACE deliver a landmark facility for the Group, enabling it to successfully implement EuroChem’s corporate strategy as one of the leading global agrochemical companies.”
EuroChem Deputy Finance Director Alexander Gavrilov added: “This milestone facility secures long-term funding for one of the Group’s most strategically important projects, while the non-recourse nature of the facility preserves the Group’s borrowing flexibility.”
The ammonia plant will be built in Kingisepp, Russia, within close proximity to the Group’s Phosphorit phosphate fertilizer facility. The plant will have a design capacity of 2,700 tonnes per day or 1 million tonnes per annum. In addition to the ammonia production facility, the project also includes utilities and offsites, such as a warehouse for liquid ammonia.
Maire Tecnimont subsidiaries Tecnimont SpA and Tecnimont Russia OOO, were retained for Engineering, Procurement and Construction (EPC) work. The ammonia plant will use technology developed by KBR and will be delivered on a lump-sum turn-key basis, including utilities and offsites. The contract value is approximately EUR 660 million. The construction phase began in the third quarter of 2015 and the ammonia plant is expected to be brought online in late 2018.
About EuroChem Group AG
EuroChem is a leading global agrochemical company producing primarily nitrogen and phosphate fertilizers, as well as certain organic synthesis products and iron ore. The Group is vertically integrated with activities spanning from mining and hydrocarbons extraction to fertilizer production, logistics, and distribution. EuroChem is currently developing two sizeable potash deposits in Russia with its VolgaKaliy and Usolskiy Potash greenfield projects. Headquartered in Zug, Switzerland, the Group operates production facilities in Belgium, China, Kazakhstan, Lithuania, and Russia and employs more than 23,000 people globally. For more information, please visit eurochem-corporate-qa1b64.azurewebsites.net or contact:
This EuroChem publication contains forward looking statements concerning future events, these statements are based on current EuroChem information and assumptions concerning known and unknown risks and uncertainties.
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