Société Générale, as part of a syndicate of international banks, has completed a US$750mn loan facility for the financing of a Russian EuroChem potash project.
The mandated lead arrangers (MLAs) of the facility included Société Générale, Crédit Agricole, HSBC, ING Bank, Rosbank, Sberbank, and UniCredit Bank. Société Générale acted as both the facility and security agent in the deal.
The non-recourse project finance facility for Russia’s Verkhnekamskoe deposit, one of the world’s largest potash deposits, has an eight-year tenor and 4.5-year grace period followed by a repayment adjusted according to the project’s cash flows.
Commenting on the deal, Ilya Polyakov, deputy chairman of the management board of Rosbank, head of coverage and investment banking for Russia/CIS, Société Générale corporate and investment banking, says: “Société Générale and Rosbank are pleased to support EuroChem in the financing of the Usolsky potash project, demonstrating our long-term commitment to key clients and the bank’s project finance expertise. We are delighted to be a part of this benchmark transaction taking into account its unique structure and tenor for the Russian market.”
Andrey Ilyin, EuroChem finance director, says: “This facility is a landmark for EuroChem, as it secures funding for one of our strategic projects and – due to its non-recourse nature – releases operating cash flows for other strategic investments.”
Law firm White & Case advised EuroChem on the project financing. “Given the current environment, this is an important deal for the Russian market and we are proud to have worked with our long-time client EuroChem to help them achieve their business goals,” adds Evgenia Laurson, a partner in White & Case’s energy, infrastructure, project and asset finance practice in Moscow.
The related documents were signed on 29 August, 2014.