The project consists of financing of the Group's working capital and liquidity requirements that would be needed in case of Covid-19 and its related impacts are prolonged for unforeseeable future.
This project was approved in the context of the Bank's response to the Covid-19 pandemic. To avoid delays to the delivery of this project, the Bank's President granted a deviation from the ordinary timelines for PSD disclosure, as contemplated by Section V of the Directive on Access to Information. Details of the Bank's response to Covid-19, and this deviation, can be found on our website.
The main objective of the project is to provide the Group with access to financing in cases of liquidity and working capital needs.
ETI score: 125
The transition impact for this project is aligned with the Bank's Covid-19 Solidarity Package, which adopts a streamlined rating approach. This project aims to address potential liquidity issues that may arise as a result of the current Covid-19 crisis and safeguard the transition impact objectives of the previous transaction with the client, which include: (i) market expansion through backward linkages and (ii) improved standards of corporate governance.
Veysaloglu Yayijili Gardashlari LLC and Veysaloglu LLC ("Veysalolgu", the "Group" or "Co-Borrowers") are a privately owned distributor of branded food products and confectionary manufacturer in Azerbaijan.
EBRD Finance Summary
A senior secured local currency loan of AZN 7m (EUR 3.5m) for financing of the Group's working capital requirements and liquidity needs.
Total Project Cost
The loan is a stand-by facility, which will be used in cases of liquidity and working capital needs.
The loan will provide necessary liquidity and a working capital buffer that are much needed under adverse market conditions. The Bank's additionality also stems from its ability to provide financing in local currency, at the time when local banks have been scaling down access to financing with access to local currency financing being constrained, as well as its ability to provide a longer tenor and a payment structure that is not readily available from local banks.
Environmental and Social Summary
Category B (2019 ESP). This is an existing client of the Bank that has been performing and reporting in a satisfactory manner. Due diligence has involved review of the client's historical performance and reporting on existing and previous projects. The client has the capability and capacity to maintain performance in line with the performance requirements and no Environmental and Social Action Plan is required for the proposed transaction.
Technical Cooperation and Grant Financing
Company Contact Information
2 Enine street, Baku, Azerbaijan
PSD last updated
23 Oct 2020
Further information regarding the EBRD’s approach to measuring transition impact is available here.
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Environmental and Social Policy (ESP)
The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.
More information on the EBRD’s practices in this regard is set out in the ESP.
Integrity and Compliance
The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.
OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to firstname.lastname@example.org. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.
Access to Information Policy (AIP)
The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.
Specific requests for information can be made using the EBRD Enquiries form.
Independent Project Accountability Mechanism (IPAM)
If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).
IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.
Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM via email email@example.com to get guidance and more information on IPAM and how to submit a request.