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.