EuroChem secures EUR 557 million in funding for an ammonia plant project
EuroChem Group AG has announced that it signed a loan agreement with a club of banks, securing project financing for construction of an ammonia plant in Russia. According to EuroChem's statement, the 13.5-year facility is worth EUR 557 million.
Commercial and political risks under the loan are insured by the Italian export and credit agency SACE, says the statement.
The mandated lead arrangers of the facility are Credit Agricole CIB, HSBC Bank plc, ING Bank (a subsidiary of ING-DiBa AG), Societe Generale and UniCredit Bank Austria AG. The agent on SACE's side is UniCredit S.p.A.
The ammonia plant will be built in Kingisepp (a town in Leningrad Oblast), close to the Group-owned Phosphorit plant that produces phosphate fertilizers. The new plant's production capacity will amount to some 2.7 thousand tonnes of commercial-grade ammonia a day, or 1 million tonnes per year. Besides the construction of ammonia-producing facilities, the project provides for the construction of utility lines and other units, including an ammonia storage facility.
The design and the construction of the plant, as well as the procurement of equipment, will be undertaken by Tecnimont SpA and LLC Tecnimont Russia, subsidiaries of Maire Tecnimont. The plant will operate using technology developed by KBR, an engineering and construction firm. The overall cost of the general contractor contract equals some EUR 660 million. The construction of the ammonia plant began in Q3 2015, and its launch is slated for the end of 2018.
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