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The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Watanabe) signed on January 15(Moscow time) a buyer's credit (export loan) agreement totaling up to about 264 million U.S. dollars (JBIC portion) with OJSC PhosAgro-Cherepovets, a subsidiary of OJSC PhosAgro in the Russian Federation (Russia) and engaging in the production of phosphorus- and nitrogen-based fertilizers. The loan is cofinanced with The Bank of Tokyo-Mitsubishi UFJ, Ltd., Citibank Japan Ltd. and Mizuho Bank, Ltd. Nippon Export and Investment Insurance (NEXI) provides Export Credit Insurance for the portion cofinanced by private financial institutions. The overall cofinancing amounts to about 440 million U.S. dollars.
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This loan will finance OJSC PhosAgro-Cherepovets to purchase a whole set of production plant facility from Sojitz Corporation and Mitsubishi Heavy Industries, Ltd. for building a new ammonia production plant in addition to existing OJSC PhosAgro-Cherepovets ammonia production capacities in Cherepovets City, Vologda oblast, located 400 km to the north from Moscow.
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In Russia, since many petrochemical and fertilizer-related plants built during the former Soviet Union years are antiquated, there is the prospect of demand for rebuilding these plants in the future. Thus, JBIC's support for the export of an ammonia production plant with this loan will lead to the creation of business opportunities for Japanese companies in petrochemical and fertilizer business in Russia, thereby contributing to maintaining and improving the international competitiveness of Japanese industries.
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As Japan's policy-based financial institution, JBIC will continue to support the expansion of exports of Japanese companies to Russia as well as opportunities for Japanese companies to participate in the country's business projects by drawing on its financial facilities and schemes for structuring projects and performing its risk-assuming function.
