The provision of a loan of up to US$ 2 million to Altyn Yunus, a Turkmenistan-based producer of snacks and confectionery products. The funds will contribute towards AY's investment programme aimed to build new production facility for the production of jelly sweets
The main objective of the project is to invest in equipment for the productions of jelly sweets and support the expansion of Altyn Yunus operations.
ETI score: 80
The project will help to the Company to expand to the new segment and improve labour productivity contributing to the "Competitive" quality and improve financial reporting standards under the "Well-governed" quality.
ALTYN YUNUS IE
Individual Enterprise Altyn Yunus (the "Borrower") is a wholesale distributor of FMCG and household chemistry products, as well as producer of snacks and confectionery products in Turkmenistan.
EBRD Finance Summary
A senior secured long-term loan of up to US$ 2,000,000 for financing the Borrower's capital expenditure.
Total Project Cost
Total project costs are US$ 5,500,000, of which USD 2,000,000 will be provided by the EBRD, and remaining USD 3,500,000 by the Borrower.
The EBRD is providing financing in US$, which is scarce in the local market, with a loan tenor which is longer than other available offers in the local market.
Environmental and Social Summary
Categorised B (ESP 2019). The production of confectionary is associated with a number of environmental and social issues which are well understood and readily managed through standard mitigation measures. Due diligence for this project was undertaken by ESD based on an environmental and social questionnaire completed by the Company. Responses to the questionnaire did not reveal any significant environmental or social issues of concern related to the project or the operations of the Company. The Company has adequate capacity to manage key environmental and social issues and systems in place to address those. The Company already operates formal management systems for quality (ISO 9001) and food safety (ISO 22000) and the HACCP system. The Company has obtained the required permits, under national law, for all operations and is subject to regular inspections. Adequate policies and procedures are in place to manage human resource issues including an appropriate grievance mechanism for workers. Risks assessments are undertaken for key occupations to monitor health and safety and accidents and incidents are tracked and mitigating measures applied. The new production facility in which the Project will take place is located in an industrial with appropriate infrastructure systems and measures, and does not pose any risk to its surroundings. The Company will be required to maintain compliance with the Bank's Performance Requirements and provide annual E&S reporting to the Bank.
Technical Cooperation and Grant Financing
The Project will include Techincal Cooperation (TC) component for: (i) local outside counsel (provided by the EBRD Shareholder Special Fund), which will partially cover the legal due diligence costs; and (ii) financial due diligence (provided by EU IFCA), which will partially cover the financial due diligence costs.
Company Contact Information
82 Ataturk str Ashgabat Turkmenistan
PSD last updated
22 Jun 2021
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