Project detail - RUSTAVI AZOT LLC

RUSTAVI AZOT LLC

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Who is our client

Rustavi Azot LLC is the largest industrial enterprise in the country with 2300 employees. The Company is the primary fertilizer supplier to customers in Georgia and the Transcaucasian region, with an actual annual production capacity of up to 500,000 tons of ammonium nitrate (or 220,000 tons of ammonia) and 14,000 tons of sodium cyanide. In 2015 the Company generated 84 per cent of its sales from exports, making the Company one of the largest exporters in the Country.

Funding objective

The Project will finance the Company’s capital expenditure for the reconstruction, modernization and recommissioning of a currently idle ammonia production line. It will also support balance sheet restructuring. The objective of the financial restructuring is to streamline the Company's debt obligations and extend the overall debt maturities. The new investment program will double the Company's ammonia production capacity and improve the Company's energy efficiency.

Why we fund this project

The financing of Rustavi Azot fits with the Agribusiness strategy and helps build the portfolio in Georgia. Rated B- (Positive) and B (Stable) by Standard & Poor’s and Fitch respectively (2015), the Company has been profitable and generated substantial dividends for shareholders since 2011, even during periods of high volatility of commodity prices, including those of the Company’s products, ammonia and ammonium-nitrate. Financing the company will contribute to the strengthening of the largest exporter and one of the largest corporates in the country with 2,300 jobs.

More investments

Date Total FMO financing
6/30/2016 USD 12.50 MLN
Region
Europe & Central Asia
Country
Georgia
Sector
Infrastructure, Manufacturing and Services
Signing date
6/30/2016
Total FMO financing
USD 12.50 MLN
Fund
FMO
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk Environmental & Social Category
(A, B+, B or C)
B