Grupa Azoty with loans from EIB and EBRD
15:05
The European Investment Bank (EIB) and the European Bank for Reconstruction and Development (EBRD) are joining hands to support further expansion of Grupa Azoty, Poland’s largest chemical and fertilizer company. The agreements, signed in London on Thursday, provide the Polish firm with a PLN 700 million (€170m) long-term financing facility, a press release read.
The facility consists of two separate 10-year loans: a PLN 550 million (€134 million) loan from the EIB and a PLN 150 million (€37 million) loan from the EBRD. It is a part of a larger PLN 2.2 billion (€504 million) long-term package designed to finance Grupa Azoty’s growth in line with the company’s 2020 Strategy, including plans for further expansion to new markets in the region and overseas. The remaining PLN 1.5 billion (€370 million) will be provided by a separate loan signed earlier this month with a consortium of Polish lenders.
"Through the strong partnership with the EBRD and the EIB, we will be able to tap into the full potential of the Polish chemical industry. Using Poland’s unique success story and geographical location in the heart of Europe we aim to become a key European player by 2020. Our 2020 Strategy, accepted by the Board last year, envisages a number of world-class investments and an ambitious plan of regional expansion, and I am delighted that the EBRD and the EIB share our vision for the future, for the benefit of Poland and the region," said Paweł Jarczewski, the CEO of the Polish group.
ZCh Police, one of the companies included in Azoty chemical group is going to develop a project valued at PLN 1.67 billion. This is the largest investment of Grupa Azoty ever. The installation is designed to manufacture propylene using PDH method. It will be the largest such plant in Europe. The investment will be developed through a special purpose vehicle (SPV) owned by Grupa Azoty and delivered by 2019. The financing provided by both institutions may be essential for the project.
