EBRD supports modernisation of fertiliser production in Georgia

• EBRD provides US$ 65 million loan to Georgian fertiliser producer Rustavi Azot
• Funds will finance new state-of-the-art plant and energy efficiency upgrades at existing facility
• Project supports transition to green economy and inclusive development

The European Bank for Reconstruction and Development (EBRD) is supporting Georgia’s private manufacturing sector by lending US$ 65 million to Rustavi Azot. This investment will finance the construction of a new state-of-the-art low-density ammonium nitrate plant, as well as energy efficiency enhancements at the firm’s existing plant with a view to reducing its environmental impact.

Rustavi Azot has been part of Indorama Corporation – a global leader in fertiliser manufacturing – since 2023. It has an annual production capacity of 550,000 tonnes of ammonium nitrate and serves clients across the region. Rustavi Azot’s existing plant is Indorama Corporation’s first European production facility, with the Georgian firm representing a strategic platform for regional growth.
The EBRD’s investment comes at a time when the resilience of regional food systems and global food security is a top priority. The modernisation of fertiliser production in Georgia will help to ensure a more stable, locally available supply of high-quality agricultural inputs. A significant part of the financing has been structured as a green loan consistent with the Green Loan Principles issued by the Loan Market Association, with proceeds allocated to eligible green projects.

In addition to environmental gains, the project will also bring about benefits in the area of inclusive development. The company will establish an in-house academy to deliver training on market-relevant technical skills, with a focus on roles supporting the green transition.

Frederic Lucenet, the EBRD’s Global Head of Manufacturing and Services, said: “The modernisation of Rustavi Azot aligns with our commitment to promote industrial decarbonisation in hard-to-abate sectors like fertiliser manufacturing in our regions. We are pleased to support our longstanding client Indorama’s strategic investment in Georgia.”

Amit Lohia, Group Vice Chairman at Indorama Corporation, said: “We are grateful to the EBRD for their unwavering support and confidence, as reflected in this important green financing and the deepening of our growing partnership. This project will help Rustavi Azot to modernise its operations, accelerate decarbonisation and increase product diversification. We look forward to enhancing Rustavi Azot’s competitiveness with such continuing investment programmes.”

To date, the EBRD has invested more than €5.52 billion in Georgia through 313 projects, supporting the development of the private sector, the modernisation of infrastructure and the transition to a green economy.