The European Investment Bank (EIB) and the European Bank for Reconstruction and Development (EBRD) are teaming up to support further expansion of Grupa Azoty, Poland’s leading chemical and fertilizer company. The agreements, signed in London on Thursday, provide the Polish company with a PLN 700m (EUR EUR 170m) long-term financing facility.

The facility consists of two separate 10-year loans: a PLN 550m (EUR 134m) loan from the EIB and a PLN 150m (EUR 37m) loan from the EBRD. It is a part of a larger PLN 2.2bn (EUR 504m) long-term package designed to finance Grupa Azoty’s growth in line with the company’s 2020 Strategy, which includes plans for further expansion to new markets in the region and overseas. The remaining PLN 1.5bn (EUR 370m) will be provided under a separate loan signed earlier this month with a consortium of Polish banks.

Paweł Jarczewski, CEO of Grupa Azoty, commented, ”Through the strong partnership with the EBRD and the EIB, we will be able to tap into the full potential of the Polish chemical industry. Using Poland’s unique success story and geographical location in the heart of Europe, we aim to become a key European player by 2020. Our 2020 Strategy, accepted by the Board last year, envisages a number of world-class investments and an ambitious plan of regional expansion, and I am delighted that the EBRD and the EIB share our vision for the future, for the benefit of Poland and the region.”

EIB President Werner Hoyer commented, “The EU bank is a strong investor in the Polish economy, and remains a committed partner for Polish companies which develop viable projects and strategies. Our priority is to enhance Poland’s competitiveness by supporting innovative and internationalizing companies such as Grupa Azoty. The Group’s strategy goes in the direction of making Europe’s chemical industry more globally competitive and energy efficient, and it is a pleasure for the EIB to be able to support this development.”

EBRD President Sir Suma Chakrabarti said, “We are happy to provide this loan to Grupa Azoty as it will bolster the successful expansion of this vibrant Polish company, which is growing into an important player on the international market. We are very pleased with the operational and financial results of the company and in full agreement with its strategy which will further strengthen its development. The EBRD remains a committed partner of Grupa Azoty and is ready to consider further support to the company.”