The provision of a senior secured loan of up to US$ 1.4 million (€ 1.2 million) to Economic Society Bir Dunya, one of the leading logistics and transportation companies in Turkmenistan
The proceeds of the Loan will support the expansion of the existing production of Big Bags via the purchase of additional equipment, which will double the production capacity of Bir Dunya to up to 600,000 units per year. The loan will finance working capital needs and allow the company to purchase and install ventilation and air conditioning equipment in the production facility and the administrative building.
ETI score: 80
The Project will contribute to the framework objectives by supporting Bir Dunya in the following areas: Competitive and Integrated.
The Project receives an ETI rating of 80 in line with the framework's TI rating approach.
BIR DUNYA ES
Economic Society Bir Dunya is a limited liability company established and operating in Turkmenistan, is one of the leading logistics and transportation companies in the country. The Company provides logistics and transport services to local and foreign companies transporting cargo and trade products to and from Turkmenistan via the Caspian Sea, Central Asia, Persian Gulf and other regions, as well as within the country. In 2017, the Company added Big Bags ("BB") production to its business activities with a maximum effective capacity of 300,000 units per year.
EBRD Finance Summary
Total Project Cost
The EBRD offers the US$ financing required for the purchase of equipment, on terms, which are not available in the market from local banks. The tenor of the loan also exceeds the 3-year term offered by domestic banks for corporate lending, which are not covered by the governmental programmes. Long-term relationship with the Bank, including mobilised technical co-operation funds and provided advisory services, will help execute the project and will support the international expansion strategy of the Company.
Technical Cooperation and Grant Financing
A. Technical Cooperation (TC)
1) Big Bag market research for Central Asia and the Caspian region to enable the Company's export strategy. Local Advisory project cost: € 13,308, including the Borrower contribution of € 3,327. Funds provided by EU IFCA.
2) Legal Due Diligence. Technical Co-operation cost: €14,660, including the Borrower contribution of € 5,864. Funds provided by EU SME FFCAF.
B. Co-investment grants / Concessional Finance (Non-TC)
Up to US$ 30,560 investment grants to be provided upon successful installation and commissioning of eligible energy efficient technologies. The grants will be provided in the context of the EBRD FINTECC programme, funded by GEF in the ETC region.
PSD last updated
17 Nov 2020
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