Azerbaijan Methanol Co, EBRD sign loan agreement for new plant

01 December 2009 15:55  [Source: ICIS news]

MOSCOW (ICIS news)--Azerbaijan Methanol Co (AzMeCo) and the European Bank for Reconstruction and Development (EBRD) have signed a loan agreement for $120m (€80.4m), allowing the company to build a new methanol plant near Baku, AzMeCo announced on Tuesday.

“The new methanol plant will stimulate the development of petrochemical industry, which will generate more investments and new employment opportunities in the country,” said Kevin Bortz, the EBRD’s director for natural resources.

The financing would come in two tranches, with a $90m senior loan for up to 9 years and $30m senior performance-linked financing to be fully repaid in the 10th year, according to the EBRD.

The 561,000 tonne/year methanol plant, which is to have a total project cost $330m, is to be built in the Garadagh district of Baku, according to AzMeCo and the EBRD. It is due on stream at the end of 2010.

“We are proud to be setting standards of corporate governance, transparency and environmental and social responsibility in Azerbaijan’s industrial sector,” said Nasib Piriyev, the CEO of AzMeCo.

“And we look forward in the next phase to expanding our plant to include the production of urea and ammonia,” added Piriyev.

AzMeCo did not disclose further details about its plans to build urea and ammonia production facilities at the new plant.

($1 = €0.67)

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By: Sergei Blagov
+44 20 8652 3214



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