The provision of a senior unsecured loand of up to US$ 60 million to Borusan Makina Kazakhstan LLP (BMK), a distributor ans seller of heavy machinery and the EBRD's existing client. The loan will be provided in two tranches of US$ 30 million each.
The loan will be used to fund the BMK's 2022-2023 captila expanditure plans (including expansion of component rebuild centre in the city of Karaganda and the acquisition of new equipment) as well as for working capital needs.
ETI score: 66
Transition impact is expected to derive from:
Primary Quality: Green
Secondary Quality: Inclusive
BORUSAN MAKINA KAZAKHSTAN LLP
Borusan Makina Kazakhstan LLP is involved in the distribution, sales and service of Caterpillar heavy machinery equipment (excavators, loaders, asphalt pavers, off-highway trucks, and etc.) in Kazakhstan. BMK is a 100 per cent owned subsidiary of Borusan Makina ve Guc Sistemleri Sanayi ve Ticaret A.S., which is engaged in the distribution and sales of Caterpillar heavy machinery equipment, power systems, spare parts and provision of related services for these products.
EBRD Finance Summary
A senior loan of up to an equivalent of US$ 60 million (€57 million) to Borusan Makina Kazakhstan LLP, the Bank's existing client. The Loan is planned to be provided in in two tranches of US$ 30 million (€28.5 million) each. The loan will be fully guaranteed by the Turkey based parent Borusan Makina ve Guc Sistemleri Sanayi ve Ticaret A.S.
Total Project Cost
The EBRD offers financing that is not available in the market from commercial sources on reasonable terms and conditions, i.e. longer tenor for WC loan and US dollars and Kazakhstan tenge denominated loans.
Client makes use of the EBRD expertise for the adoption of gender standards and/or equal opportunities action plans (e.g. improving women's access to safe transport and/or women-led businesses participation in the client supply chain).
Environmental and Social Summary
Categorised B with Low-Medium risk (ESP 2019). In-house E&S due diligence carried out for the previous transaction concluded that the Company is largely compliant with the PRs in key areas such as health and safety, air emissions, waste management, labour and supply chain management. The environmental and social risks associated with this transaction are related to land acquisition due to additional physical expansion of the existing facility, potential past land contamination issues, supply chain, contractors' management, labour, working conditions in the new operational workshops, occupational health and safety, traffic management and stakeholder engagement. The project is assessed as Paris aligned for climate mitigation as it features in the joint MDB "aligned list". The Physical Climate risk score for the project is 1 as the counterparty is considered highly diversified as it operates at several geographical locations, across multiple business lines with no significant concentration in its customer base.
Technical Cooperation and Grant Financing
Technical Cooperation on Inclusion - equal opportunities
Company Contact Information
Berna Demir Yegenoglu
Gebze Organize Sanayi Bölgesi 1500. Sokak, No: 1501
PSD last updated
25 May 2022
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