TOAZ GETS FINANCING TO PREPARE FOR THE CONSTRUCTION OF ITS THIRD UREA PRODUCTION UNIT

Togliattiazot signed a loan agreement with a consortium of the banks Commerzbank AG (Zurich, Switzerland) and Landesbank Baden-Wuerttemberg (Stuttgart, Germany) of EUR 180 million for a period of 9 years. The interests are payable after a two-years grace period, at a rate of ca. 2% p.a.. The agreement shall be backed by Swiss Export Risk Insurance (SERV).

The borrowings are intended to finance the design of the third urea production unit with a capacity of 2,200 metric tons per day at PJSC TOAZ site and supplies of equipment and technologies for its construction. The unit is more cost effective and efficient than its existing equivalents.

An independent audit was conducted as a part of preparations for receiving the loan. The audit confirmed Togliattiazot’s compliance with the requirements of the International Financial Corporation (IFC, a member of the World Bank Group), including in the areas of environmental and occupational safety, and social policy.

Petr Ordzhonikidze, Chairman of the Board of Directors of PJSC Togliattiazot, commented on the agreement: “It is for the first time in its history that Togliattiazot gets such complex financing, so the entire process required thorough and concerted efforts of the financial and economic department and many other services of the company. Indeed, we appreciate the duration and interest rate of this loan, which are now the new benchmark for Togliattiazot. The decision by reputable international financial organisations to support TOAZ’s project is a quality mark, a confirmation that our strategy is correct and a display of confidence in its success.”

The new unit design was developed in collaboration with Casale S.A. (Lugano, Switzerland). After the commissioning the unit will allow TOAZ to increase the share of ammonia processed into a product with a higher added value, create about 100 new jobs and make additional payments to budgets of all levels. The unit was designed using the latest industrial and environmental safety technologies to ensure a substantial decrease in air emissions when providing a urea purity degree of 93%. To date, the project has successfully passed the public hearings and state expertise and received a construction permit. The unit is expected to be commissioned in 2020.

Togliattiazot currently operates two urea units, each producing 480,000 tonnes yearly.

25.12.2018THE SECOND UREA UNIT AT TOGLIATTIAZOT BACK AT FULL CAPACITY AFTER MAJOR OVERHAUL

Togliatti, 25 December 2018 – The major overhaul of the second urea unit has come to a close at Togliattiazot Public Joint-Stock Company, the largest Russian ammonia producer. As of today, all commissioning operations have been finalized, and the unit is operated at the full capacity.

06.12.2018TOAZ CONTINUES THE IMPLEMENTATION OF ITS PROJECT IN TAMAN

Togliatti, 5 December 2018 – Documentation on planning of the area for construction of an ammonia and carbamide transshipment complex in Taman seaport (Krasnodarsky Region, Russia) was approved by the order of the Federal Agency for Maritime and River Transport (FAMART). The project is being implemented by Togliattiazot PJSC, the largest ammonia producer in Russia, at its own expense. The implementation of the project for the transshipment complex construction in Taman seaport proceeds in accordance with the Roadmap for Development of Seaports in the Azov and Black Sea Basin up to 2020 that was approved by the Government of Russia.

03.09.2018DMITRY AZAROV VISITED TOGLIATTIAZOT

Dmitry Azarov, Interim Governor of the Samara region, visited PJSC Togliattiazot.