Translated version of this PSD: Polish
The EBRD is providing a PLN 150 million (ca. EUR 37 million) senior unsecured loan to the Polish leading chemical company Grupa Azoty as part of a PLN 2.2 billion (ca. EUR 537 million) financing package.
The investment will enable the Company to conduct its planned core investments into efficiency improvements and capacity expansion, in particular focusing on improved energy, resource and operating efficiency. The investments will also support the Company’s expansion with new products to be introduced as a result of the Group’s R&D activities.
The expected transition impact of the Project will arise from the demonstration of ways of successful restructuring of companies. Following the completion of the consolidation, the Group is expected to restructure the assets and realise significant synergies deriving from the acquisitions thus increasing its operating efficiency.
Through the financing, EBRD supports the second step of the Group’s transformation focused on large-scale operational restructuring based on an ambitious investment plan leading to creation of an internationally competitive, modern and innovative Polish chemical group. The main goals of the contemplated investments relate to modernisation of production facilities, improvement of energy and operating efficiency, as well as expansion of the business in new and core segments.
The Bank’s participation, which is critical for execution of the investment programme, will ensure the implementation of selected strategic modernisation and expansion projects that will improve significantly the competitiveness of the production processes, reduce specific energy consumption per ton of product and reduce carbon emissions of the Company’s facilities.
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 2014 consolidation of Polish chemical industry, at present Grupa Azoty is made up of 46 entities which are direct or indirect subsidiaries. Moreover, the Company announced it was seeking to diversify its portfolio through regional and global acquisitions.
Senior corporate unsecured loan to the borrower in the amount of PLN 150 million (EUR 37 million) with up to 10 years maturity. The loan will be co-financed with the EIB and 4 Polish commercial banks as part of a larger PLN 2.2 billion (EUR537 million) debt financing package.
PLN 1,011 million (EUR 247 million)
Environmental and social categorisation, impact, and mitigation
Categorized B. The Bank, together with an independent consultant, undertook an ESDD of the Project, inclusive of a review of the investment program and status of implementation of the existing ESAP. This follows up on the previous ESDD, in 2013, which included a comprehensive review of all assets and the pre-existing ESAP addressed issues from all Group operations and was structured to allow for longer compliance with the EU Industrial Emissions Directive (IED).
The ESDD confirmed that the Bank financed Project is structured in compliance with the Bank's Performance Requirements and existing ESAP, and that the Company has the institutional capacity to fully implement the Bank's PRs. The Company is undertaking Best Available Techniques (BAT) Assessments as part of the integrated permit review and re-issue process as required by Competent Authorities. An additional comprehensive BAT Assessment of all installations is to be undertaken in 2015 as part of ESAP requirements. The ESDD has confirmed that the current investments are structured to allow for ongoing compliance with Polish and EU legislation, inclusive of the EU’s IED ad relevant BAT BREF Notes.
In 2014, a year earlier than required by the existing ESAP, the Company published a consolidated CSR report. The Company, through a number of energy efficiency measures, will reduce its overall carbon emission per ton of product as well as reduce the total use of coal, notably in Tarnow and Pulawy plants.
The ESDD confirmed that the Company has good Human Resources system in place, which is currently being updated, in line with best practice and to take account of the Groups consolidation. No redundancies are planned and the Company has a high staff retention rate.
Based on the findings of the ESDD, the existing ESAP has been slightly updated to take account of the current investment plans and needs. This has been formally agreed with the Company
The Bank will continue to monitor the Project implementation.
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