A senior secured loan of up to EUR 5.6 million to Gemza Group LLC for the construction of three modern warehouses.
The Project will help the Company to expand operations in a new business direction and diversify its revenues.
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 a secondary objective. The Project supports framework objectives by supporting an SME in the areas of "Competitive" and "Green".
GEMZA GROUP LLC
Gemza Group supplies rotating equipment (pumps and valves), manufactures spare parts and provides repair, maintenance and overhaul services in Azerbaijan, some of the Central Asian countries, UAE and Türkiye. The proposed transaction will be the Bank's second engagement with the Borrower.
EBRD Finance Summary
Total Project Cost
Additionality stems from the tenor and repayment structure of the proposed loan, which is necessary to undertake the Project. Local banks mostly provide shorter tenor loans with restrictive repayment schedules. The Client also makes use of the EBRD's expertise in energy and resource efficiency to achieve the EDGE certification.
Environmental and Social Summary
Categorised B (ESP 2019). The Company is an existing client of the EBRD. Gemza Group has environmental and health and safety management systems in place benchmarked to ISO standards. The construction of the pre-fabricated warehouses is taking place at the existing land plot previously acquired by the Company in an existing industrial zone. The proposed construction activities do not require an EIA and are regulated by the national construction permit, which specifies all required health and safety and environmental measures that need to be implemented during the construction. The construction site is connected to the storm water and waste water collection facilities. Required fire response equipment and preparedness arrangements are in place. As part of the warehouse construction the Company plans to install small solar panels. The Company shall ensure that the supplier and manufacturer of the solar panel is on the approved GTS list.
Technical Cooperation and Grant Financing
Post-singing technical cooperation to identify resource and energy efficiency opportunities to be financed under FINTECC EU4Climate Programme funded by EU NIP.
Company Contact Information
Bashir Bunyadov, 3L, Baku, Sabuncu AZ1040, AZ, Baku/Azerbaijan
PSD last updated
29 Nov 2022
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Independent Project Accountability Mechanism (IPAM)
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