The provision of a US$ 2.5 million senior secured loan to ES "Milli Hasyl" to support the expansion of the existing hydroponic greenhouse business from the current 5.2 hectares to 10.2 hectares.
The Project will support the installation of new hydroponic greenhouses and fitting them with an advanced cooling system allowing a longer cultivation season / additional harvest.
ETI score: 80
The DFF SME framework primarily targets the Competitive quality by helping SMEs restructure and become more efficient or professional. Sub-projects can target any of the other transition qualities as secondary objective. This Project is supporting framework objectives by supporting an SME in the following areas: Competitive and Green.
MILLI HASYL ES
The Borrower is a limited liability company incorporated and operating in Turkmenistan and engaged in the production of greenhouse tomatoes.
EBRD Finance Summary
US$ 2.5 million senior secured loan to ES "Milli Hasyl".
Total Project Cost
Financing structure: a) Loan tenor is above the market average.
Risk mitigation: a) the EBRD provides comfort to the client by mitigating non-financial risks.
Environmental and Social Summary
Categorised B (ESP 2019). The installation and operation of hydroponic greenhouse is associated with a number of environmental and social (E&S) issues although these can be readily addressed through standard mitigation measures. Hydroponic greenhouses are recognised as having a number of advantages over conventional methods of agriculture particularly in terms of water savings. E&S due diligence for this project included the completion of a questionnaire by the Company and follow up with the Company clarify key issues. The Company has also participated in a TC-funded health and safety (H&S) project which included site visit to the Company by third party H&S experts and the development of a dedicated H&S action plan. Due diligence has confirmed that the Company has adequate staffing and procedures in place to manage E&S issues in accordance with national requirements and the Bank's PRs. The Company will be required to comply with the agreed H&S action plan and the Bank's PRs and report annually on E&S issues.
Technical Cooperation and Grant Financing
1. Review and Restatement of Financial Statements Consistent with IFRS: € 13,000. Funding source: EU-EBRD SME Finance Facility for CA- Phase 2.
2. Legal due diligence: €28,160. Funding source: EU-EBRD SME Finance Facility for CA- Phase 2 and GET Framework.
3. Technical due diligence on verification of construction expenditures: €R 6,100. Funding source: EU-EBRD SME Finance Facility for CA- Phase 2.
4. Green International Advisory project: € 60,000. Funding source: EU IFCA through the EBRD Advice for Small Businesses in Turkmenistan programme and € 30,000 GEF through the EBRD Finance and Technology Transfer Centre for Climate Change (FINTECC) programme.
5. Occupational Safety and Health Support in the Agribusiness Sector in Turkmenistan: € 39,000. Funding source: Shareholders Special Fund.
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.
Company Contact Information
Mr Toyly Amansahatov
+993 12 754555
744000, Turkmenistan, Ashgabat, Geldi Bashiev street, No. 93
PSD last updated
11 Nov 2020
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