The provision of a senior loan of up to US$ 2.5 to Parahat, a leading producer of juices and dairy products in Turkmenistan. Funds to be used for the procurement of technological equipment and working capital purposes.
Parahat is planning to introduce glass bottle recycling facility, new packaging equipment, which will incerase shell life of its products and improve their transportability, including for potential foreign clients. It will also going to expand/diversify its operation by introducing new PET bottling line.
ETI score: 80
The DFF SME framework primarily targets the Competitive quality by helping the SMEs to restructure and to become more efficient or professional. Sub-projects can target any of the other transition qualities as the secondary objective. The majority of projects typically support the Well-governed quality by helping companies improve their financial management, or the Green quality by facilitating energy efficiency or environmental improvements.
Parahat is a privately owned leading juice and dairy producer in Turkmenistan.
EBRD Finance Summary
US$ 2.5m senior secured loan
Total Project Cost
1. Financing structure: The EBRD offers financing that is not available from commercial sources on reasonable terms and conditions, e.g. a longer grace period that is rarely available in the market, FX financing, etc.
2. Risk mitigation: The EBRD provides comfort to clients and investors by mitigating non-financial risks, such as country, regulatory, project, economic cycle, or political risks.
3. Standard-setting: helping projects and clients achieve higher standards: Client seeks/makes use of the EBRD expertise over energy and resource efficiency and climate resilience financing via provision of energy and climate audits, minimum performance standards of technologies, climate related strategies and policies, monitoring, reporting and verification (MRV) systems etc.
Technical Cooperation and Grant Financing
(1). Implementation of Food Safety Management System (FSMS) ISO22000:2005; the EBRD Shareholders Special Fund ("SSF"); €7,500 inc. BAS €5,625, completed in March 2015. (2). Certification of FSMS in compliance with ISO22000:2005; EU-IFCA Turkmenistan; €5,500 inc. BAS €4,125, completed in February 2016. (3). Pre-investment TC funding for the following (40 per cent shared by the Borrower): (a) Financial due diligence to verify the Borrower's standing; SME Finance Facility for Central Asia Ph 2/SSF; €13,308. (b) Legal due diligence to review the legal standing and draft/negotiate documentation; SME Finance Facility for Central Asia Ph 2/SSF; €14,500.
Company Contact Information
Turkmenistan Str., Buzmein etrap, Housing Comlex Yalkym, 744000 Ashgabat, Turkmenistan
PSD last updated
25 Jun 2021
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