The 12-year senior loan facility was arranged by Erste Group’s Ceska Sporitelna and KBC Bank’s subsidiary Ceskoslovenska obchodni banka, in cooperation with Romanian lender Banca Comerciala Romana, or BCR, also an affiliate of Erste.
“The loan will enable Azomures to carry out one of its most significant investment projects during the past 30 years,” the statement noted.
The modernization works, which will be executed by Czech company Chemoproject Nitrogen, include the replacement of the plant’s granulation tower.
Following the works, production capacity at Azomures’ urea plant will increase to 1,425 tons a day, from 900 tons a day currently.
Founded in 1962, Azomures manufactures ammonium nitrate, calcium ammonium nitrate, urea, urea ammonium nitrate (UAN) and NPK complex fertilizers and melamine.
The company is 96.49%-owned by Swiss grain trader Ameropa Holding AG.
The Swiss company has scheduled total investments of about $200 million at its Romanian unit.