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PhosAgro Raises USD 250 mln, 4-year Pre-Export Loan

28 June 2016
Moscow – PhosAgro (“the Company”, Moscow Exchange, LSE: PHOR), one of the world’s leading vertically-integrated phosphate-based fertilizer producers, has raised its debut pre-export financing with a syndicate of international banks. Société Générale, PJSC Rosbank, and UniCredit Bank Austria AG acted as Coordinating Mandated Lead Arrangers, while АО UniCredit Bank and PJSC Rosbank acted as Passport Banks. 

The facility agreement was signed by PhosAgro subsidiary JSC PhosAgro-Cherepovets and the banks for a total amount of USD 250 million, with a four-year maturity. The Company plans to use the funds to refinance existing debt.  Drawdown of the facility will begin before the end of June.

PhosAgro CEO Andrey Guryev said: “I am pleased to note that the cost of foreign-currency financing for high-quality borrowers like PhosAgro has returned to an attractive level. This new PXF will be used for refinancing of existing short-term debt and refinancing of more expensive debt.  It will also serve as a benchmark transaction to test the appetite for the PhosAgro name, and to ensure we have a full range of financing options available, in anticipation of the USD 500 million Eurobond refinancing in 2018.”

Rosbank First Deputy Chairman of the Management Board*, Société Générale Corporate and Investment Banking Head of Coverage and Investment Banking for Russia and the CIS Ilya Polyakov said: “This successful debut pre-export loan for PhosAgro, which is a key client of Société Générale/Rosbank in Russia, was possible thanks to our longstanding relationship.  This deal was successful thanks to PhosAgro being an exceptionally high-quality borrower with an excellent management team, combined with Société Générale’s leading position and competencies in the area of structured finance.”

UniCredit Bank Management Board Member Kirill Zhukov-Emelyanov said: “As part of the large international UniCredit banking group, we are happy to support the successful development of our long-time strategic partner PhosAgro.  This deal’s success once again confirmed UniCredit’s leading position in the structured finance market.”

* Appointment to the Management Board pending approval with the Russian Central Bank