Grupa Azoty has taken another step in the process of financial stabilisation and preparation of a long-term debt restructuring. The company announced that on 1 June 2026 it signed a term sheet with financing institutions, a document setting out the preliminary key terms of the planned restructuring of financial liabilities. These arrangements are intended to form the basis for the target financing agreement, which the parties will continue to work on. The agreement was concluded with a group of banks and financial institutions participating in the financing of Grupa Azoty, which together with the company are to develop the target long-term financing structure. The signatories include PKO Bank Polski, Bank Gospodarstwa Krajowego, ING Bank Śląski, Erste Bank Polski, CaixaBank, Banco Santander, Erste Factoring, ING Faktoring, Pekao Faktoring, the European Investment Bank and the European Bank for Reconstruction and Development. Grupa Azoty CEO Marcin Celejewski said that signing the document opens the next stage of talks on the future financing of the entire group. As he indicated, the agreed framework is intended not only to enable a new repayment schedule to be put in place, but also to create the conditions for investment and a gradual return to the development of the core operating business.
Marcin Celejewski said: "We are entering the stage of arrangements concerning the future of Grupa Azoty's financing. Together with the financing institutions, we have developed the framework and the path towards a multi-year financing agreement for the Group. These include, among other things, a new debt repayment schedule and a planned share issue, thereby creating room for investment projects and a gradual return to the development of the core business."
Main assumptions of the agreed term sheet
The preliminarily agreed terms provide for several key elements concerning debt servicing and organisation. According to the presented assumptions, the new repayment schedule is to provide for repayment of 25 percent of the financing by the end of 2030. The remaining 75 percent is to be repaid on the final repayment date, on the basis of a report that Grupa Azoty is to submit to financial institutions by 30 June 2029. This document is to describe how the group intends to refinance liabilities falling due on the final repayment date.
The arrangements also include a grace period for repayment of principal instalments until 30 June 2027. In addition, implementation of a cash sweep mechanism is planned, which is to make it possible to allocate part of generated excess cash to earlier reduction of the debt covered by the restructuring. The term sheet also provides for the establishment of security over the assets of selected companies from Grupa Azoty, maintenance of agreed financial parameters and ratios, and preparation and submission to financing institutions of information materials concerning the reorganisation process and the group's investment plans.
One of the elements of the arrangements is also the completion by 31 July of this year of the planned share issue, in accordance with the resolution of the Extraordinary General Meeting of Grupa Azoty of 13 March this year.
Parallel measures to reduce debt
In parallel with the talks with financing institutions, Grupa Azoty is carrying out measures intended to permanently reduce its debt level. The company indicated that one of the key elements of this process is the planned transaction concerning Grupa Azoty Polyolefins and cooperation with Orlen. According to the company's declaration, it is expected to significantly improve the financial situation of the entire group and reduce the level of debt.
In the management board's assessment, signing the term sheet is an important stage in building the long-term financial stability of Grupa Azoty. The company emphasises that the document increases the predictability of further business and investment activities, although at this stage it constitutes a set of preliminarily agreed terms intended to lead to the conclusion of the target financing agreement.
