FMO, together with other lenders, arranged a USD 155 million financing package for a major Georgian manufacturer, Rustavi Azot. The company is a producer of nitrogen-based fertilisers and is the largest industrial enterprise in Georgia, with 2,200 employees and an annual production capacity of up to 500,000 tonnes of ammonium nitrate and 220,000 tonnes of ammonia.
The USD 155 million facility will consist of a US$ 125 million syndicated loan and a USD 30 million parallel loan extended by the Bank of Georgia. The syndicated loan will be split amongst three lenders, with USD 50 million from the EBRD’s account, USD 25 million to be syndicated to FMO and USD 50 million from East West United, a Luxembourg-based bank. The Georgian Partnership Fund also plans to become a shareholder of Rustavi Azot at the time of the loan disbursement.
The funds will be used to upgrade and modernise the ammonia production line, using energy-efficient measures that will decrease energy consumption by 30 per cent, and for debt restructuring. The refurbished plant will comply with higher environmental standards and improve competitiveness. Rustavi Azot is an export-oriented company and the sole producer of nitrogen-based fertilisers in the south Caucasus. It is the primary supplier of ammonium nitrate, used in agriculture to improve crop yields, to customers in Georgia and the Caucasus region.
The investment will also boost regional trade as, thanks to Georgia’s geographical location, Rustavi Azot can supply customers worldwide. Supporting the development of private local companies is one of the strategic priorities of FMO and the EBRD and this investment will also set higher standards of corporate governance and business conduct.
