OREANDA-NEWS. PhosAgro (Moscow Exchange, LSE: PHOR), one of the world's leading vertically integrated phosphate-based fertilizer producers, announces that its subsidiary PhosAgro-Cherepovets has signed a USD 440.6 million loan agreement, backed by a insurance from the Nippon Export and Investment Insurance (NEXI), with the Japan Bank for International Cooperation (JBIC) and a group of banks consisting of The Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU), Citibank Japan Ltd. and Mizuho Bank, Ltd.

JBIC will provide USD 264.4 million (60% of the total) with a tenure of 13 years, while BTMU, Citi Japan and Mizuho Bank will lend USD 176.2 million (40% of the total) with a tenure of seven years.

The proceeds from the loan will be used to fund construction of a new 760 ths tonnes/year ammonia plant at PhosAgro-Cherepovets in the Vologda region. The construction contract for the ammonia plant was signed with an international consortium led by Mitsubishi Heavy Industries, Ltd. in June 2013. The consortium also includes Sojitz Corporation and Renaissance Construction. The licensor of the ammonia production technology is Haldor Topsoe (Denmark), a leading global engineering company in this sector. Commissioning of the new plant is currently planned for 2017.

PhosAgro CEO Andrey A. Guryev said: “This loan once again underscores that PhosAgro is a first-class borrower that is able to attract funding at highly attractive rates: the average interest rate sets a new benchmark, significantly below that of the Eurobonds PhosAgro issued last year. In addition, we are likely to be the first publicly traded, private-sector company in Russia to receive funding directly from JBIC in recent years. I am very pleased to note that this new, long-term funding also represents further progress on optimising our borrowings and reducing PhosAgro's cost of funding.”