SHCHEKINOAZOT and GAZPROMBANK: AGREEMENT ON INDICATIVE CONDITIONS FOR THE FINANCING OF AN AMMONIA AND CARBAMIDE PROJECT[14.02.2019]
At the Russian Investment Forum in Sochi, agreements were signed for financial support for new projects of Shchekinoazot.
Shchekinoazot and Gazprombank (JSC) entered into an Agreement on indicative conditions for financing the construction project for an ammonia and carbamide production plant with a design capacity of 525 000 and 700 000 tonnes per year, respectively, at the industrial site of Shchekinoazot, located in Pervomaysky Shchekino District of the Tula Region.
The document was signed by Andrey Tokarev, Deputy General Director for Financial Resources at Shchekinoazot JSC, and Alexey Belous, Deputy Chairman of the Management Board of GPB (JSC).
According to the document, the lender will provide financing in the form of a line of credit to finance the project.
Under the credit line, separate tranches will be allocated in accordance with individual targeted use.
The planned financing period is not more than 10 years.
The project budget is defined in the amount of 550 million US dollars.
Shchekinoazot continues to advance with continuous developments. Today it is a necessary condition to ensure not just success, but confident competitiveness and leadership positions in the international and domestic markets. Shchekinoazot sets the task of expanding its presence in the mineral fertilizer market, moving to a deeper processing of raw materials, and manufacturing products demanded by consumers.
“Over the past 13 years, we have implemented 16 investment projects within the framework of the Company's Development Strategy, many of which were carried out in parallel, and the amount of investments exceeded $ 882 million,” noted Andrey Tokarev. "In 2018, A-135 methanol M-450 / ammonia unit, SK-200 sulfuric acid, perfume quality dimethyl ether, and treatment plants were put into operation.
And today we continue our activities to further develop the company. An agreement was signed with the Chinese company SEDIN Engineering Co for the construction of a plant to produce nitric acid and ammonium nitrate. Pre-design, technical and commercial development of an ammonia-urea project is underway, as well as development of a strategy for entering the mineral fertilizer market.
Today we have signed an agreement with Gazprombank (JSC) on indicative conditions for financing the ammonia and urea project.
GPB is our long-time reliable partner, in alliance with whom Shchekinoazot implements yet another project. AmKar is a really major project. But it is not the last, others will follow.
Strengthening the company's position in the market of mineral fertilizers and industrial chemistry, and contributing to the victories of Russian producers in the international arena is a task to which we are ready to give our strength, professional knowledge and accumulated experience in the future ...