The provision of a senior secured long-term committed loan of US$ 8m loan ("Loan") to IE Datly Sherbet (the Company"), one of the leading confectionary producers in Turkmenistan. The Loan will finance the first phase of the Company's expansion.
The loan will finance purchase of equipment to diversify confectionary's product range as part of the first development phase.
ETI score: 66
1.The Company will invest in expansion and product range diversification thus improving its competitiveness as compared to other producers and importers contributing to the Competitive quality.
2. The new product range will enable the Company to explore opportunities on the markets of China and Kyrgyzstan. Eventually, the exports of confectionary and pastry products shall reach 20 per cent of the total confectionary output by 2023 contributing to the Integrated quality.
DATLY SHERBET IE
"Datly Sherbet", a sole proprietorship established and operating in Turkmenistan, is one of the leading confectionary manufacturers founded in 2014 (the "Company").
EBRD Finance Summary
A senior secured long-term loan of US$ 8 m for financing of the Company's capital expenditure as part of its phased development programme.
Total Project Cost
Financing Structure: (a) Loan tenor is above the market average and (b) the Loan is a large volume instrument that fills a market gap, both necessary to structure the Project;
Risk mitigation: (a) long term relationship provides comfort to the client to be willing to take more risk or/and finance enabling outcomes such as innovation or expansion into new markets, (b) EBRD mitigates non-financial risks.
Environmental and Social Summary
Categorised B (ESP 2014). Environmental and social due diligence for this project included a review of an E&S questionnaire provided by the Company. Previous E&S due diligence on the same company included a site visit by a member of the Bank's Environment and Sustainability Department. The Company has confirmed, through both the questionnaire previous due diligence and annual reporting that it is compliant with national requirements for environment, health, safety and labour management. The company is currently operating certified systems for the quality management (ISO 9001) and food safety (ISO 22000) and has adequate staffing in place to manage the key EHS issues. The Company's production facilities are modern, completed in 2017, and the site for the additional Project elements has been acquired from the government and is adjacent to current production facilities. To enhance the current management of environmental, health and safety issues the Bank has agreed an environmental and social action plan (ESAP) with the Company including requirements to ensure appropriately qualified EHS staff are in place, and to further develop current management systems to integrate environmental health and safety consideration into those systems in accordance with good practice models such as ISO 14001 and 45001. The Company will be required to comply with the Bank's PRs and report annual on E&S performance and the implementation of the ESAP.
Technical Cooperation and Grant Financing
Company Contact Information
Mr. Begench Orazov
Mary city, Margiana-Seydi crossroad, Turkmenistan
PSD last updated
07 Apr 2020
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