The highly ambitious Polimery Police project in Poland has come another step closer to realisation now that the management board of Grupa Azoty Polyolefins S.A. has signed the commitment letters with a group of 11 Polish and international financial institutions, confirming the submission of debt offers for the prestigious project. The total amount offered by these 11 financial institutions fully covers the Company's demand for senior debt financing.
The project involves the construction of a new polyolefin complex located in Police, in northwest Poland. The complex will include a propane dehydrogenation process unit (PDH Unit), a polypropylene production unit (PP Unit), a polypropylene logistics infrastructure, auxiliary units and handling and storage terminal comprising port facilities for the unloading and storage of propane and ethylene from seagoing vessels.
Around 40% ($720 mln) of the required funding will be from junior capital (equity and subordinated loans). The remaining ca. 60% of the budget, i.e. $1,075 mln will be covered by a long-term senior loan with recourse to the main sponsors - companies of the Grupa Azoty Capital Group - limited only to the guarantee of completion of construction in the amount of €105 million.
In addition, the company will be granted a VAT loan during construction and a revolving facility to finance working capital in the operating phase.
Grupa Azoty Polyolefins S.A. is a special purpose vehicle implementing the Polimery Police project. The project is scheduled for completion in Q4 of 2022.