Acron signs US$750m PXF

News | 9 May 2017

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Acron has signed a five-year pre-export finance facility with a value of up to US$750m.

The funds will go towards refinancing the outstanding balance of US$468.2m from the “syndicated structured pre-export finance facility dated 30 December 2014, and for general corporate purposes,” a statement from the company said.

The mineral fertilisers’ latest facility was also secured through a syndicate of global banks and financial institutions.

Acron released its financial results for 2016 at the start of Q2 2017, reporting that net profit rose by 53% in the year.

“The year 2016 was one of most challenging years for the global mineral fertiliser market over the past decade. Demand could not keep pace with increasing supply, and almost every market segment was oversupplied, which put pressure on prices. Prices for certain products like ammonia hit their lowest level since 2005,” said Alexander Popov, chairman of Acron’s board of directors.

“However, 2016 was also a watershed year. We saw some longstanding trends broken after a price slump in Q3. This led to a spike in prices, so the year ended on a positive note. Urea exports from China decreased for the first time ever as Chinese producers became unable to compete due to high coal prices. Competition forced less efficient players out of the market and created a new balance. Acron Group finished the battle with record-high output of 6.5 million tonnes.”

Acron’s new ammonia plant, Ammonia-4, based in Veliky Novgorod, Russia, began production in July 2016, and the company has increased its stake in its Railway Operating Company, Acron-Trans, from 50% to 100%.

Acron Group annually moves more than seven million tonnes of cargo. 

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