The European Investment Bank (EIB) and the European Bank for Reconstruction and Development (EBRD) are teaming up to support further expansion of Grupa Azoty, Poland’s leading chemical and fertiliser company. The agreements, signed in London on Thursday, provide the Polish company with a PLN 700m (€170m) long-term financing facility.
The facility, confirmed at a signing ceremony at the EBRD’s headquarters in the City of London, consists of two separate 10-year loans: a PLN 550m (€134m) loan from the EIB and a PLN 150m (€37m) loan from the EBRD. It is a part of a larger PLN 2.2bn (€504m) long-term package designed to finance Grupa Azoty’s growth in line with the company’s 2020 Strategy, including plans for further expansion to new markets in the region and overseas. The remaining PLN 1.5bn (€370m) will be provided by a separate loan signed earlier this month with a consortium of Polish banks.
Paweł Jarczewski, CEO of Grupa Azoty, commented:
”Through the strong partnership with the EBRD and the EIB, we will be able to tap into the full potential of the Polish chemical industry. Using Poland’s unique success story and geographical location in the heart of Europe we aim to become a key European player by 2020.
Our 2020 Strategy, accepted by the Board last year, envisages a number of world-class investments and an ambitious plan of regional expansion, and I am delighted that the EBRD and the EIB share our vision for the future, for the benefit of Poland and the region.”
EIB President, Werner Hoyer, commented:
“The EU Bank is a strong investor in the Polish economy, and remains a committed partner for Polish companies which develop viable projects and strategies.
Our priority is to enhance Poland’s competitiveness by supporting innovative and internationalising companies such as Grupa Azoty. The Group’s strategy goes in the direction of making Europe’s chemical industry more globally competitive and energy efficient, and it is a pleasure for the EIB to be able to support this development.”
EBRD President, Sir Suma Chakrabarti, said:
“We are happy to provide this loan to Grupa Azoty as it will bolster the successful expansion of this vibrant Polish company as it is growing into an important player on the international market. We are very pleased with the operational and financial results of the company and in full agreement with its strategy which will further strengthen its development.
The EBRD remains a committed partner of Grupa Azoty and remains ready to consider further support to the company.”
About Grupa Azoty
Listed on the Warsaw Stock Exchange (ticker: WSE:ATT), Grupa Azoty is Poland’s largest chemical company and the European Union’s second-largest producer of fertilizers, while such products of Grupa Azoty as melamine, caprolactam, polyamide, OXO alcohols, and titanium dioxide also enjoy a strong position in the chemical sector and find application in different other industries.
Following the successful consolidation of Polish chemical industry, at present Grupa Azoty consists of 46 different entities. The Polish government declared Grupa Azoty a ‘strategic asset’, and the Company announced it was seeking to diversify its portfolio through regional and global acquisitions.
About the European Investment Bank
The European Investment Bank (EIB) is the long-term lending institution of the European Union owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals. In 2014, the European Investment Bank lent EUR 77 billion, out of which EUR 5.5 billion was earmarked for projects in Poland.