Sberbank signs a loan agreement with EuroChem
October 2011, Moscow – Sberbank of Russia and EuroChem signed a long-term RUB20 billion loan agreement.
EuroChem will use the loan for general corporate purposes, including investment programme financing and potential M&As.
‘Financing mineral fertilizer manufacturers is a key lending priority for Sberbank. Despite market volatility, we continue to develop relationships with our customers’, said Alexander Bazarov, VP and Director of Major Accounts Department of Sberbank.
‘EuroChem is pleased to welcome Russia’s largest financial institution in its credit portfolio, particularly at the time of heightened volatility in the financial markets. Proceeds from this loan will allow EuroChem to continue strengthening its competitiveness in the global agrochemical markets in line with the company’s strategy’, said Andrey Ilyin, EuroChem’s Director for Finance and Economy.
EuroChem is a top ten agrochemical company globally by nutrient capacity, producing primarily nitrogen and phosphate fertilizers, as well as certain organic synthesis products and iron ore.
EuroChem’s main manufacturing assets include the Nevinnomysskiy Azot, Novomoskovskiy Azot, Phosphorit, EuroChem – BMU, and Kovdorskiy GOK facilities in Russia and Lifosa in Lithuania. The Group is vertically integrated with activities spanning from mining to fertilizer production, logistics, and distribution. EuroChem holds licenses to develop potash reserves in Russia which entitle it to an estimated fifth-largest volume of potash reserves globally.
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