One of the EBRD’s priorities in Azerbaijan is to support the growth of the non-oil private sector by investing in in dynamic small and medium-sized enterprises.
Today, the European Bank for Reconstruction and Development is providing financing to one such company based near the capital Baku. Matanat-A, a fast-growing manufacturer of construction materials, is Azerbaijan’s biggest maker of surface covering materials such as gypsum plaster, mortars, cement-based adhesives and concrete additives.
A €7 million loan from the EBRD will finance a new production line for gypsum plaster and dry mixes.
“Matanat is a home-grown enterprise which not only strives to provide high quality products to the construction sector, but has demonstrated its commitment to the highest standards of management and corporate governance – exactly the kind of enterprise the EBRD aims to support. Matanat will benefit not only from EBRD financing but from expert advice through the Enterprise Growth Programme”, said Neil McKain, EBRD Head of Office in Baku.
Late last year, Matanat also started a project to improve the group’s commercial and marketing management with the EBRD’s Enterprise Growth Programme - a donor-supported programme that brings top quality experts to SMEs around the region.
Companies like Matanat are key in realizing the Bank strategy in Azerbaijan and throughout its region of operations as corporate governance and competitiveness of such companies are enhanced through EBRD investments conditionalities as well as technical assistance, including through the EGP and BAS programmes.
To date, the EBRD has invested over €2.1 billion in various sectors of the Azeri economy, mobilizing an additional €5.3 billion from other sources of financing.