DFF - Avrora



Project number:


Business sector:


Notice type:


Environmental category:


Approval date:

16 Mar 2021



PSD disclosed:

16 Mar 2021

As per section 1.4.2 (iii) of the Directive on Access to Information: "For Projects approved by Bank management where the Board of Directors has delegated the approval authority, the PSD shall be disclosed at the start of the relevant no-objection notification period to a member country of the Bank in accordance with Article 13 (iii) of the Agreement Establishing the EBRD."

Project Description

The Project consists of a senior secured loan up to EUR 25m with Tranche 1 (EUR 12.5m) to be committed for the investment in pasta production and an uncommitted Tranche 2 (EUR 12.5m) to finance biscuit, cake and feed business lines. The loan will be fully provided in Azerbaijani manats. 

Azerbaijan economy has been hit by the twin shocks of the COVID-19 pandemic and a slump in oil prices in 2020 and GDP has contracted by 4.3%. However, with correction of oil prices the GDP is forecasted to increase by 2% in 2021. The client's both segments of business (distribution and production) were positively impacted and revenues have increased by 24% in 2020.

Project Objectives

The Tranche 1 of EUR 12.5m will be used to finance the new pasta production through refinancing of the bridge short-term loans currently in place for the construction phase.

The use of proceeds of the Tranche 2 of EUR 12.5m will be used to finance the biscuit, cake and feed business lines, in particular the acquisition of new equipment. 

The Project falls within the key strategic priorities of the Bank's Country Strategy for Azerbaijan (BDS/AZ/19-01(Final), which states that the Bank will support local companies in expansion through direct financing and targeted long-term advisory while promoting economic diversification. 

Transition Impact

ETI score: 65

(i) Inclusive (Primary): entailing the introduction of accredited trainings in partnership with external education providers for up to 120 young people in Azerbaijan; and

(ii) Green (Secondary): entailing to reflect the increase in pasta production and is related to the use of modern energy and water efficient process technologies. The GET share of the Project is estimated at 23%. 

The Project is also additional and will be categorised as Gender SMART through the introduction of an equal opportunities action plan, consisting of a review of Avrora's current HR policies and practices to improve working conditions for women. 

Client Information


Avrora is one of the leading distributors of FMCG products and a manufacturer of food and beverages in Azerbaijan, fully owned by Mr. Jeyhun Abbasov. 

EBRD Finance Summary

AZN 50,668,500.00

A senior secured long-term loan up to EUR 25m in manat, consisting from (i) committed Tranche 1 of EUR 12.5m ; and (ii) uncommitted Tranche 2 of EUR 12.5m.

Total Project Cost

AZN 56,748,720.00


Additionality of the Project stems from the Bank's ability to offer financing that is not available in the market from commercial sources on reasonable terms and conditions. The Project requires a long-term capital expenditure financing in local currency, which the local banks are reluctant to provide, whereas the Bank is being additional by providing a longer tenor that is rarely available in the market. 

Environmental and Social Summary

Category B (2019 ESP). The EHSS risks associated with the installation and operation of plant associated with pasta and cake production are well known to the Bank and can be managed via the implementation of standard industry practices. Due diligence was carried out in line with the ESDD COVID-19 Approach and involved the completion of a questionnaire by the client and follow-up Q&A with the client management team to clarify aspects of the use of proceeds. The client has appropriate internal capabilities around risk management associated with the operation of the planned upgrades but requires to strengthen their contractor management procedures for construction and fitting out works. Additionally, the client needs to develop a stakeholder engagement procedure to attain compliance with PR10.  

Technical Cooperation and Grant Financing

The Project is accompanied by Technical Cooperation (TC) to support the client both in the introduction of training and the development of the Equal Opportunity Action Plan and is funded by bilateral donor or Shareholder Special Fund under the Gender and Inclusion TC Framework TCRS 12804. The client will partially cover the TC cost (up to 20%).

Company Contact Information

Serkhan Rahimli
994 12 310 22 59
Alasgar Qayibov street 10Q STN Business Centre AZ1108

PSD last updated

16 Mar 2021

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.


Share this page: