RUSTAVI AZOT LLC
Status: Completed investmentWhy disclosure?
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In case of questions, please contact us at disclosure@fmo.nl
Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
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.
What is our 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 do we fund this investment?
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 |
|---|---|
| 12/1/2016 | USD 12.50 MLN |
- Region
- Europe & Central Asia
- Country
- Georgia
- Sector
- Infrastructure, Manufacturing and Services
- Effective date
- 6/30/2016
- End date
- 12/1/2016
- Total FMO financing
- USD 12.50 MLN
- Funding
- FMO NV
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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