+44 207 394 30 90 (London)

TOAZ has unlocked finance for the construction of a third urea unit

Main » News Feed » TOAZ has unlocked finance for the construction of…

Togliattiazot, a major ammonia producer in Russia, has signed a 9-year loan agreement 180m EUR worth with a syndicate of Commerzbank AG (Zurich, Switzerland) and Landesbank Baden-Wuerttemberg (Stuttgart, Germany).

As follows from the loan agreement, the interest rate is to be paid after a two-year grace period and to equal 2% per annum. SERV is to act as a warrantor.

Loaned assets are intended for the design engineering and equipment supply to build the third urea unit as of 2200 tpd, a more thrifty and effective unit compared to the existing ones on the premises of TOAZ.

Within the framework of financing process, an independent IFC compliance audit in terms of HSE and social policy was carried out.

Commenting on the agreement signature, Chairman of the Board of TOAZ Peter Ordzhonikidze has noted that it is the first time historically when Togliattiazot attracts a complicated and long-term loan financing, so the process demands a scrutiny and coordination of both finance and economy and other enterprise divisions. “We highly estimate the finance terms we’ve obtained. In particular, its cost and length now will be a reference standard for Togliattiazot. The intension of international finance organisations to support TOAZ project is some kind of a quality mark, validation of our strategy and confidence in its success”.

The project of a new urea unit is developed in cooperation with Casale S.A. (Lugano, Switzerland). The project will allow to boost a share of ammonia converted to a HAV product, as well as create 100 new job opportunities, and ensure higher budget contributions. The unit design is based on innovative HSE technologies, which ensures a considerable emission reduction and a 93% conversion rate. As for now, the project has passed through public consultations and national board review, with construction permit obtained. The commissioning is scheduled for 2020.

Togliattiazot currently hosts two operating urea units with a capacity at 480 tpa each.

Source: http://firstsamara.ru/

MORE

SOCAR Carbamide: Urea production can reach 650,000 tons in 2020

SOCAR Carbamide Plant is expected to operate at full capacity in the first half of December 2019, the plant’s Director Khayal Jafarov told reporters on the sidelines of an international conference on the role of the Paris Agreement in climate and environmental change in Baku Nov. 27,Trendreports. The director noted that the volume of urea…


EuroChem and Maire Tecnimont sign memorandum of intent for potential new urea and ammonia plant

EuroChem Group has signed an early works contract for a potential new urea and ammonia production facility, subject to further investment plan approval, at Kingisepp, northwest Russia, with Maire Tecnimont. Under the terms of the agreement, Maire Tecnimont will carry out preliminary engineering and site surveying work at the brownfield site adjacent to EuroChem’s existing…


Fertz major EuroChem nears decision on new ammonia, urea, and methanol plants

KINGISEPP (ICIS)–EuroChem is nearing a final decision on ambitious plans for new ammonia, urea, and methanol plants in northwest Russia to serve international markets, two executives from the Switzerland-headquartered fertilizer group disclosed on Tuesday. The green light for a 1m tonne/year ammonia facility; 1.1m-1.5m tonne/year granular urea plant; and a 1.8m tonne/year methanol manufacturing unit…