Mass Media Overview
Russia/Buyer’s Credit Insurance for PhosAgro-Cherepovets’ Ammonia Plant Project
11.03.2014 10:37
http://www.nexi.go.jp/
January 16, 2014
Nippon Export and Investment Insurance
Nippon Export and Investment Insurance (NEXI) has decided to provide Buyer’s Credit Insurance to Japanese banks for loans financing OJSC PhosAgro-Cherepovets’ ammonia plant construction project. OJSC PhosAgro-Cherepovets is a subsidiary of a major Russian fertilizer producer OJSC PhosAgro.
The ammonia plant (production capacity of 2,200 metric tons per day) will be built in the city of Cherepovets approximately 400 kilometers north of Moscow. Mitsubishi Heavy Industries, Ltd. (MHI) and Sojitz Corporation of Japan, together with a Turkey-based company, won the EPC contract to construct the facility.
The loans of USD 440 million for the project will be provided by Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU), Citibank Japan Ltd., Mizuho Bank, Ltd. (MHBK), and Japan Bank for International Cooperation (JBIC). NEXI's insurance will cover the portion of the loans of USD 176 million provided by the three commercial banks.
The financing will facilitate exports by Japanese companies from a financial perspective and contribute to enhancing the global competitiveness of Japanese companies. NEXI will continue to support exports by Japanese companies through our Buyer’s Credit Insurance.
Reference
Borrower - OJSC PhosAgro-Cherepovets
Type of insurance - Buyer’s Credit Insurance
Insured amount - USD 176 million
Covered risk - Political Risk 100％ and Commercial Risk 100％
Tenor - Approximately 7 years