EuroChem announced today that it was awarded the Euromoney Trade Finance “Deal of the Year 2010” for its USD 261 million, 10-year loan facility backed by South African Export Credit Agency ECIC and used to finance the ongoing construction of the cage shaft at its Gremyachinskoe potash deposit by South Africa-based Shaft Sinkers (Pty) Limited.

Andrey Ilyin, EuroChem CFO, commented: “This deal was the first ever ECIC loan granted to a Russian company and the first ECA-backed facility for EuroChem. Moreover, it further highlighted our commitment to our potash projects. Thanks to this transaction, EuroChem remains on track with its potash investments and is still the only clear contender for new potash greenfield capacity anytime before 2015.”

Alexander Gavrilov, EuroChem Head of Corporate Finance, said:

“This facility provided EuroChem with long-term liquidity without the risks of incurring idle-cash carrying costs, all the while permitting us to efficiently manage our leverage ratios.”

This is not the first EuroChem transaction to be recognized as “Deal of the Year” by Euromey Trade Finance Magazine. In 2009, EuroChem secured a USD 1.5 billion syndicated loan from major international banks in a deal that was then hailed by the Russian government as a sign of confidence in the crisis-hit economy. The deal went on to receive numerous “Deal of the Year” awards.

EuroChem is one of the world’s top ten agrochemical companies by capacity. Vertically integrated with activities spanning from mining to logistics and distribution, EuroChem focuses on nitrogen and phosphate fertilizer production and holds licenses to develop potash reserves in Russia which entitle it to the fifth-largest volume of proven and probable potash reserves globally.

Its main production assets include the Nevinnomyssky Azot, Novomoskovsky Azot, Phosphorit, EuroChem – BMU, and Kovdorsky GOK facilities in Russia and the Lifosa plant in Lithuania.