The provision of loan of up to US$2 million to individual enterprise Agayana the only producer of particleboard in Turkmenistan. The loan will be used to finance supplementary equipment, which will increase the production capacity of the plant and to expand its range of products.
The objectives are: (1) Increase the output and deversify product range. (2) Further strengthen market position. (3) Enable the expansion of exports to Azerbaikan, the Kyrgyz Republic, Tajikistan and Uzbekistan.
ETI score: 80
The DFF SME framework primarily targets the Competitive quality by helping the SMEs to restructure and to become more efficient or professional. Sub-projects can target any of the other transition qualities as the secondary objective. The majority of projects typically support the Well-governed quality by helping companies improve their financial management, or the Green quality by facilitating energy efficiency or environmental improvements.
Individual enterprise Agayana - the only producer of the particleboard and a sole proprietorship registered and operating in Turkmenistan and owned by Mr. Nurmyrat Berdiyev.
EBRD Finance Summary
The EBRD Loan will finance the purchase of various equipment for production of particleboards and working capital requirements.
Total Project Cost
1. Financing structure: the EBRD offers financing that is not available from commercial sources on reasonable terms and conditions, e.g. a longer grace period that is rarely available in the market, FX financing, etc.
2. Risk mitigation: the EBRD provides comfort to clients and investors by mitigating non-financial risks, such as country, regulatory, project, economic cycle, or political risks.
3. Standard-setting: helping projects and clients achieve higher standards: Client seeks/makes use of the EBRD expertise over energy and resource efficiency and climate resilience financing via provision of energy and climate audits, minimum performance standards of technologies, climate related strategies and policies, monitoring, reporting and verification (MRV) systems, etc.
Technical Cooperation and Grant Financing
(1). Business plan for expansion of production of chipboard: a business plan preparation funded by EU IFCA via the EBRD Advice for Small Businesses (ASB); €8,100 incl. 25 per cent client contribution. (2) Financial due diligence (DD): verification of the Group's financial standing; the EBRD Special Shareholder Fund ("SSF"); €13,190, incl. 30 per cent client contribution. (3) Local legal DD: review the standing and draft agreements from the Turkmen law perspective; SSF; €14,260 incl. 30 per cent client contribution. The Borrower/the Sponsors have also contributed 100 per cent or €12,000 of the cost of engaging a UK counsel.
Company Contact Information
139/1 Gorogly Sh., 744000 Ashgabat, Turkmenistan
PSD last updated
01 Sep 2021
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