DFF - RER Modern Hides



Project number:


Business sector:

Manufacturing and Services

Notice type:


Environmental category:


Approval date:

01 Dec 2020



PSD disclosed:

15 Apr 2021

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

Senior secured loan of up to USD 2.0 million (EUR 1.7 million) to RER Modern Hides LLC.

Project Objectives

The company is seeking financing for the construction of a new modern production plant and auxiliary facilities that will enable RER Modern Hides to improve the quality of manufactured leather hides and expand the product variety reaching wider customer base and export markets.

Transition Impact

ETI score: 80

The DFF SME framework primarily targets the "Competitive" quality by helping SMEs to restructure and become more efficient or professional. Sub-projects can target any of the other transition qualities as secondary objective. The project is supporting framework objectives by supporting an SME in the following areas: "Competitive" and "Integrated".

Client Information


RER Modern Hides LLC is one of the largest producers and exporters of semi-finished and finished leather hides in Azerbaijan. 

EBRD Finance Summary

USD 2,000,000.00

Total Project Cost

USD 4,400,000.00


Additionality stems from tenor and repayment structure of the proposed loan, which is necessary to undertake the capex programme for construction of the production plant. Local banks mostly provide shorter tenor loans with restrictive repayment schedule (amortizing structure without grace period) that limits the company's capacity to implement investment programme.

Environmental and Social Summary

Category B (2019 ESP). Due diligence has involved a review of a completed Environment and Human Health, Safety, and Security (EHSS) questionnaire by the client which has shown that the environmental and social risks associated with the project are site specific and can be managed via standard industry practice. The questionnaire has highlighted a number of areas that will require to be addressed in an Environmental and Social Action Plan that will be agreed with the client prior to signing. Specifically, these areas include: the lack of a documented environmental risk management procedure for an operation that involves the use of potentially hazardous materials such as solvents; a review of the client's human resources policies to confirm compliance with the requirements of the International Labour Organisation in relation to age and nature of employment; the implementation of an employee grievance that meets the requirements of the EBRD's Performance Requirement 2; and the development of a contractor management plan to address the risks related to the use of contractors in the proposed construction works.

Technical Cooperation and Grant Financing

1. Legal due diligence to be financed 80% by the Turkey - EBRD Cooperation Fund Account and 20% by the company.

2. Lender Supervisor to be financed 80% by the Turkey - EBRD Cooperation Fund Account and 20% by the company.

Company Contact Information

Ramil Hasanov
Absheron district, Ashaghi Guzdek settlement

Implementation summary

PSD last updated

21 Apr 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.


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