IFC chemicals and fertilizers clients include a diverse range of local companies as well as multinationals. We tailor our products to meet a wide variety of client needs: greenfield and expansion projects, modernization programs, energy efficiency, acquisitions, financial restructuring, and improvements in environmental, health, and safety performance.
Kuybyshev Azot (KuAz) is one of Russia's top chemical and fertilizer producers. The company's two major products are:
In 2010, KuAz produced 520.4 thousand tons of ammonia and 174.6 thousand tons of caprolactam, bringing total sales to near $ 0.7 billion.
KuAz is a long-standing IFC client, and has progressively reduced its operating costs and improved environmental performance in the course of the 8 years relationship with IFC.
In early 2009, in the midst of the financial and economic crisis, IFC approached KuAz for supporting the company in its cost cutting measures and adopting more efficient energy use practices to not only reduce costs, but also increase competitiveness, and improve environmental performance. With IFC's guidance, KuAz developed a modernization investment plan to be financed by IFC.
Identification of Investment Opportunities
IFC Sustainable Business Advisory's internal expertise was used to review the investment program and in cooperation with the client identified five high-priority cost-effective and environmentally-beneficial opportunities to reduce client's operating expenses. In particular the following opportunities were identified:
Based on the identified investment opportunities, IFC Investment Department extended a $20 million loan to finance KuAz's energy efficiency/environmental upgrade program, with a total cost of $40 million.
Following the successful 2009 project implementation, in FY12 the IFC investment team discussed with KuAz additional resource efficiency financing package. In partnership with IFC Sustainable Business Advisory the team appraised the new investment program. The identified investments included:
IFC signed a Cleaner Production Lending Facility (CPLF) loan of $10 million to finance the above measures in June 2012. The total project cost is $54 million.
It is expected that the additional financing project will result in additional:
*As of June 2012
Yana Gorbatenko, Global Lead | +7 (495) 411-7555 | Moscow, Russia | YGorbatenko@ifc.org
Anil Chandramani |Chief Investment Officer | +1 (202) 473-8041 | Washington, DC | AChandramani@ifc.org