PhosAgro Signs USD 440.6 Million Syndicated Loan

For Immediate Release 16 January 2014 PhosAgro Signs USD 440.6Million Syndicated Loan Moscow - PhosAgro (Moscow Exchange, LSE: PHOR), one of the world's leadingvertically integrated phosphate-based fertilizer producers, announces that itssubsidiary PhosAgro-Cherepovets has signed a USD 440.6 million loan agreement,backed by a guarantee from the Nippon Export and Investment Insurance (NEXI),with the Japan Bank for International Cooperation (JBIC) and a group of banksconsisting of Bank of Tokyo-Mitsubishi (BTMU), Citibank Japan and Mizuho Bank. JBIC will provide USD 264.4 million (60% of the total) with a tenure of 13years, while BTMU, Citi Japan and Mizuho Bank will lend USD 176.2 million (40%of the total) with a tenure of seven years. The proceeds from the loan will be used to fund construction of a new 760 thstonnes/year ammonia plant at PhosAgro-Cherepovets in the Vologda region. Theconstruction contract for the ammonia plant was signed with an internationalconsortium led by Mitsubishi Heavy Industries Ltd in June 2013. The consortiumalso includes Sojitz and Renaissance Construction. The licensor of the ammoniaproduction technology is Haldor Topsoe (Denmark), a leading global engineeringcompany in this sector. Commissioning of the new plant is currently plannedfor 2017. PhosAgro CEO Andrey A. Guryev said: "This loan once again underscores thatPhosAgro is a first-class borrower that is able to attract funding at highlyattractive rates: the average interest rate sets a new benchmark, significantlybelow that of the Eurobonds PhosAgro issued last year. In addition, we arelikely to be the first publicly traded, private-sector company in Russia toreceive funding directly from JBIC in recent years. I am very pleased to notethat this new, long-term funding also represents further progress on optimisingour borrowings and reducing PhosAgro's cost of funding." For further information please contact: OJSC PhosAgro Irina Evstigneeva, Head of Corporate Finance and Investor [email protected]+7 495 231 3115 Timur Belov, Press Officer+7 495 232 9689 EM Sam [email protected]+44 7554 993 032+7 916 306 6112 Notes to Editors PhosAgro is a leading global vertically integrated phosphate-based fertilizerproducer. The Group focuses on the production of phosphate-based fertilizers,feed phosphate and high-grade phosphate rock (with P2O5 content of not lessthan 39 percent), as well as ammonia and nitrogen-based fertilizers. The Group is the largest phosphate-based fertilizer producer in Europe, thelargest producer of high-grade phosphate rock worldwide and the second largestMAP/DAP producer in the world (excluding China), according to Fertecon.PhosAgro is also a leading producer of MCP feed phosphates in Europe, and theonly producer in Russia. PhosAgro has 2.1 billion tonnes of resources (according to JORC) of highquality apatite-nepheline ore, representing over 75 years of production. TheGroup also controls substantial Al2O3 resources and has 41% of Russia's rareearth oxides resources according to the G.P. Luzin Institute of EconomicProblems of the Kolskiy Scientific Centre of the Russian Academy of Sciences,2010). The Group's mines and phosphate rock production facilities are located in themountainous areas of the Kola Peninsula in the Murmansk region of northwestRussia, whereas its fertilizer and feed phosphate production assets are locatednear the city of Cherepovets in the Vologda region and near the city ofBalakovo in the Saratov region of southwest part of European Russia. PhosAgro's2012 IFRS revenue was over USD 3.4 bln and EBITDA was USD 1.1 bln. The Сompany's net debt/EBITDA ratio was 0.77 at 31 December 2012.

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