The provision of a senior loan of up to US$ 25.0 million (€ 23 million) in favour of Borusan Makina Kazakhstan LLP (BMK), a limited liability company incorporated in Kazakhstan, to finance its working capital needs.
The proposed transaction will provide short-term liquidity to BMK for working capital financing and help maintain its financial stability. The project willl preserve and help achieve transition gains set forth under the project and ensure the availability of short-term working capital financing to BMK, supporting them in overcoming the implications of the COVID-19 pandemic.
ETI score: 63
The aim of this operation to support BMK's short-term liquidity needs and preserve its financial viability. The Company's financial stance is critical to support the project for delivery of the originally expected Transition Impact.
Primary TI Quality: Inclusive;
Secondary TI Quality: Competitive.
BORUSAN MAKINA KAZAKHSTAN LLP
Borusan Makina Kazakhstan LLP ("BMK") 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. (the "Sponsor" or "BMGS"), 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 US$ 25.0 million (€23 million) in favour of Borusan Makina Kazakhstan LLP.
Total Project Cost
COVID-19 crisis response: The impact of the COVID-19 crisis is being seen in liquidity stress for corporate clients as it imposed constraints on commercial banks' lending and renewal of financing facilities. The Bank provides a liquidity facility for short-term liquidity needs of the Borrower, which is not readily available to raise in the capital markets due to the COVID-19 outbreak.
Environmental and Social Summary
Categorised B (2019 ESP). The provision of short-term working capital to BMK is not associated with any new environmental or social risks or impacts. Due diligence for this transaction has comprised review of the Company's response to Covid-19 and progress with implementation of the environmental and social action plan (ESAP) for the Bank's previous project with BMK. BMK formed a dedicated Covid-19 task force and has been implementing crisis management plans to safeguard employees and customers. Adequate measures have been put in place with regards to OHS and HR. 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 Company has been making satisfactory progress in implementing the agreed ESAP. This solidarity loan does not require additional monitoring or reporting. The EBRD will continue to monitor BMK environmental and social performance via reporting for the previous transaction. There is no GET component associated with this Project.
Technical Cooperation and Grant Financing
Company Contact Information
Berna Demir Yegenoglu
Gebze Organize Sanayi Bölgesi 1500. Sokak, No: 1501
PSD last updated
25 Jun 2020
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Independent Project Accountability Mechanism (IPAM)
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