Linklaters has advised a club of banks on a €557 million loan agreement for EuroChem’s ammonia project in Russia. The facility, which is structured as a limited-recourse €557 million 13.5 year project finance facility, benefits from insurance cover provided by the Italian Export Credit Agency SACE in respect of both political and commercial risks.

The Mandated Lead Arrangers included Crédit Agricole CIB, HSBC Bank PLC, ING Bank (a Branch of ING-DiBa AG), Société Générale and UniCredit Bank Austria AG. ING Bank acted as the documentation agent and coordinator, HSBC acted as the due diligence agent and coordinator and UniCredit Bank AG acted as the facility and the security agent. UniCredit S.p.A acted as the SACE agent.

The plant will have a design capacity of 2,700 tonnes per day  which is equivalent to approximately 1 million tonnes per annum.

The Linklaters team was led by Projects partner Matthew Keats.

Linklaters has also advised the Lenders in relation to EuroChem's project financing of its US$3 billion Usolsky Potash mine in Perm, Russia.