RF Unimetal II



Project number:


Business sector:

Manufacturing and Services

Notice type:


Environmental category:


Approval date:

26 May 2020



PSD disclosed:

28 May 2020

As permitted by paragraph 2.6 of Section III of the Access to Information Policy, disclosure of this PSD was deferred in accordance with paragraph 1.4.4 of the Directive on Access to Information.

Project Description

This project was approved in the context of the Bank's response to the COVID-19 pandemic.  To avoid delays to the delivery of this project, the Bank's President granted a deviation from the ordinary timelines for PSD disclosure, as contemplated by Section V of the Directive on Access to Information. Details of the Bank's response to COVID-19, and this deviation, can be found on our website.

Proposed transaction is a senior secured loan of up to AZN 6mn (EUR 3.3mn) equivalent (the "Loan") to Unimetal LLC ("Unimetal" or the "Borrower"), one of the leading producers and traders of the construction materials in Azerbaijan. The Bank will support the Unimetal to address the impact of COVID-19 on its operations and financial performance. The loan is composed of AZN 2.125mn committed and AZN 3.875mn uncommitted tranches. 

Project Objectives

The Loan will provide the Unimetal with necessary liquidity and working capital buffer to support its operations under the adverse market conditions due to COVID-19 impact. The committed tranche (AZN 2.125mn) will be used to refinance the principal repayment needs under the existing EBRD loan. The uncommitted tranche (AZN 3.875mn) will help the borrower adress the liquidity gap during the post-lockdown recovery period.

Transition Impact

ETI score: 60

Transition Impact: Good

The aim of this operation is to safeguard the transition impact that has been achieved as part of the existing project with the borrower under the DFF SME framework. The existing project targets the "Competitive" and "Well-governed" qualities through:

(i) improved management structures and change of strategic orientation of the company (Competitive); and

(ii) improved financial management and reporting practices (Well-governed).

Client Information


Unimetal is one of the leading producers and traders of metal building materials in Azerbaijan. Established as a trading company, Unimetal has gradually moved to production of a wide range of metal products for the construction sector. 

EBRD Finance Summary

AZN 6,000,000.00

Total Project Cost

AZN 6,000,000.00


EBRD financing is provided in the extraordinary circumstances of the COVID-19 crisis and effectively bridges a liquidity gap due to adverse market conditions.

Environmental and Social Summary

Categorised B (2019 ESP). Unimetal is an existing client and is satisfactorily implementing the Bank's E&S requirements. E&S risks and impacts associated with the use of proceeds are limited and relate to existing operations. E&S due diligence adopted ESD's ESDD approach to COVID-19 and included a review of annual reports and the existing ESAP as well as follow up questions to the company. The company has robust framework in place for managing E&S issues and risks associated with its activities and has applied this to managing health and safety risks associated with COVID-19. The Company has to date avoided worker retrenchment. It is considering various options including reduced working hours, potential temporary salary reductions, unpaid leave and government support schemes to avoid/reduce future retrenchment. Any retrenchment will need to be conducted in line with EBRD's PR2. The current ESAP is appropriate for this transaction and specific actions related to worker retrenchment will be included in the financing documentation.

Technical Cooperation and Grant Financing

Legal works TC to support the preparation of legal documents and undertake legal due diligence of the Borrower. Total costs are estimated at ca EUR 24,000 and will be funded through donor or Bank budget.    

Company Contact Information

Rufat Azizov
+99450 4508854
AZ1029, Baku city, N.Narimovanov district, Z. Bunyadov avenue 122A

Implementation summary

PSD last updated

28 May 2020

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and Compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD Enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM  via email ipam@ebrd.com to get guidance and more information on IPAM and how to submit a request.


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