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EBRD Approves $120 Million Financing Package For Azerbaijan's AzMeCo



LONDON -(Dow Jones)- The European Bank for Reconstruction and Development Friday approved a funding package of $120 million to Azerbaijan methanol producer AzMeCo to finance a new methanol plant.

The transaction will fund the conversion of Azerbaijan's natural gas into methanol for export, which will help diversify the country’s gas reserves, as well as add value, the EBRD said in a press release.

The financing package, the EBRD's largest to date for a locally owned private company in Azerbaijan, will comprise a $90 million loan and a $30 million quasi- equity facility, the development bank said.

With the total cost of the plant exceeding $300 million, the International Bank of Azerbaijan will co-finance the project, the EBRD said.

The EBRD, which was inaugurated in May 1991, facilitates investment to help develop market economies and democracies from central Europe to central Asia.

-By Clare Connaghan, Dow Jones Newswires; +44 (0) 20 7842 9496, clare.connaghan@dowjones.com


  (END) Dow Jones Newswires
  10-23-090507ET
  Copyright (c) 2009 Dow Jones & Company, Inc.

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