WARSAW: Chemicals firm Police, a unit of Azoty group, signed a framework cooperation deal on financing its PLN 1.7 billion propylene installation project with Poland’s investment support vehicle PIR, Police said. Police, another Azoty unit ZAK, and PIR are yet to hammer out details on financing the installation. Police vowed to prepare project structure and financing structure within the next six months.
“Once the financing model is built I assume a contract with banks which will participate in senior debt financing will be needed,” PIR head Jerzy Gora said at the press conference. “I believe that the second stage of [securing] financing will not require that much time.”
Grupa Azoty could also decide to issue bonds to finance the project, CEO Pawel Jarczewski said. PIR has become “the preferred financial investor” in the project and its share in the SPV for the project is not to fall below 25%, the press statement showed. Grupa Azoty expects to start building the installation in H1 2016 and to launch it in January 2019.
