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Lenders syndicate starts financing of Nakhodka Mineral Fertilizer Plant

January 29, 2020

The syndicate of lenders - VEB.RF and VTB Bank (PJSC), as well as the Far East Development Fund (FRDV, VEB.RF Group) started financing of the investment project for the construction of the Nakhodka Mineral Fertilizer Plant in the Primorsky Territory (Nakhodka). International contractor (China Chengda Engineering Co., Ltd.) has received an advance payment and has already begun work on the EPC contract, which involves the construction of a turnkey plant. NFP is expected to reach full capacity before the end of 2023.

The total projected production capacity at the first stage of the project will be 1.8 million tons of methanol per year. Natural gas for production will be supplied from fields in Sakhalin. Production and its products will meet the highest environmental standards.

The project is financed by the VEB.RF - VTB Bank (PJSC) syndicate based on the principles of a Project Finance Factory. In addition, the FRDV allocated 7 billion rubles for the construction of the enterprise; part of the funds has already been provided to the project initiator.

The implementation of the project will create over 1,500 new highly professional jobs in the Primorsky Territory. After the launch of the plant, tax revenues to the budget will increase significantly, the efficiency of the use of natural resources will increase, and Russia's position in the markets of the Asia-Pacific region will be strengthened.

Link to the press release (https: //вэб.рф/press-tsentr/42458/, https://www.vtb.ru/o-banke/press-centr/novosti-i-press-relizy/2020/01/ 2020-01-29-sindikat-kreditorov-otkryl-finansirovanie-stroitelstvu-zavoda-po-pererabotke-prirodnogo-g/)