62680 LONG-TERM PARTNERSHIPS WITH EMERGING PLAYERS Nitol Solar, Ltd. – Repositioning a Company for Success in the Renewable Energy Market Nitol Solar Ltd., a Russian chemicals company, was a flagging, state-owned enterprise before three entrepreneurs bought the firm in 2003 and made its chemical and silicon-gas operations profitable. In 2008, Nitol sought IFC’s assistance to reposition itself as a key player in the global solar energy market, with a focus on polysilicon—the main material used to produce solar cells. In approaching IFC, Nitol was looking for a partner who could help the company attract additional financing and implement best- practic environmental and social standards in the renewable energy sector. Demand for solar energy has been growing in excess of 30 percent a year since 2001— leading to a global shortage of polysilicon. To demonstrate its commitment to Nitol, IFC bought a $50 million equity stake in the company in 2008, and has the option to provide another $25 million to the company in senior loans. “We welcome IFC as a shareholder—because it is not just a financial investor, but also an advisor on sustainable development. This investment is a strong endorsement of our business model and a recognition of the social and environmental value of our project.” --Dmitry Kotenko, CEO, Nitol Solar IFC also has responded to Nitol Solar’s needs by committing to work with the company to: • Attract Additional Long-term Financing IFC’s confidence in Nitol’s business model and potential revenue stream has generated interest in the company and helped its efforts to secure critical new funding. Following the economic downturn, IFC’s support played a key role in Nitol’s ability to raise a $360 million financial rescue package in early 2009, a rarity in current Russian market conditions. • Provide Support to Alleviate Hazardous Waste Nitol has committed to remediate any mercury contamination on land adjacent to its production site in southeastern Siberia. IFC has agreed to help the company identify consultants able to do this work, and to help Nitol generate financing for the clean-up as the need arises. • Implement Best Practices IFC is working with Nitol to implement management plans and processes based on international performance standards. In the environmental arena, for example, IFC specialists will advise the company on dismantling old equipment and addressing pollution prevention and abatement. The Nitol-IFC partnership is designed to transform the mid-sized, export-oriented chemical producer into a more specialized, higher¬margin, and more technologically advanced company. It also is expected to generate more than $1 billion in export revenues over nine years. Although Nitol has experienced setbacks during the global economic downturn, both Nitol and IFC remain firmly committed to this project. For more information about IFC’s chemicals industry sector, please contact: Anil Chandramani, 1-202-473-4081 or achandramani@ifc.org Kremena Tenev, 1-202-458-5466 or ktenev@ifc.org Printed on material that meets international environmental standards and is from sustainably managed commercial forests ifc.org 2010