EuroChem secures USD 750 Million project financing for Usolskiy potash project
Moscow, September 3, 2014 – EuroChem, a top ten global fertilizer company, is pleased to announce that it has signed a loan facility with a syndicate of banks for the project financing of its Usolskiy potash project.
The facility, which is structured as a non-recourse US$ 750 million project finance facility, and its related documents were signed on 29 August, 2014. The 8-year facility has a 3.5-year availability period.
The Mandated Lead Arrangers of the facility included Crédit Agricole CIB, HSBC Bank PLC, ING Bank N.V., OJSC Rosbank, Sberbank CIB, Société Générale S.A., ZAO UniCredit Bank, with Société Générale acting as both facility and security agent.
Andrey Ilyin, EuroChem Finance Director commented, “This facility is a landmark for EuroChem, as it secures funding for one of our strategic projects and – due to its non-recourse nature – releases operating cash flows for other strategic investments”.
EuroChem Deputy Finance Director Alexander Gavrilov added: “One of a handful of project finance exercises in Russia, this milestone facility provides our potash project with long-term funding, while keeping EuroChem’s overall borrowing capacity and credit profile intact.”
EuroChem is currently developing phase 1 of its Usolskiy potash project located within Russia’s Verkhnekamskoe deposit, one of the world’s largest potash deposits. With a planned annual capacity of 2.3 MMT of KCl, it is the most technologically advanced greenfield project in the industry. The second phase of the project currently involves the construction of an additional skip shaft, which will bring the site’s total annual capacity to 3.7 MMT. EuroChem estimates to have acquired mining rights on proven and probable reserves of around 2.5 billion tonnes of ore to feed its operations at Usolskiy.
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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