Senior secured loan of up to USD 3.5 million (EUR 3.1 million) in local currency equivalent to Universal Pro LLC for the development of a four-storey B class office building with gross leasable area of 3,700 square meters.
The project will allow the Universal Pro to create a diversified cash flow stream from the property segment by capitalizing on the growing demand for modern office spaces in central districts of Baku.
ETI score: 80
The DFF SME framework primarily targets the "Competitive" quality by helping SMEs to restructure and become more efficient or professional. Sub-projects can target any of the other transition qualities as secondary objective. The project is supporting framework objectives by supporting an SME in the areas of "Competitive" and "Well-Governed".
UNIVERSAL PRO LLC
Universal Pro LLC is one of the leading companies in Azerbaijan for distribution of construction materials and industrial tools.
EBRD Finance Summary
Total Project Cost
Additionality stems from tenor and repayment structure of the proposed loan, which is necessary to undertake the capital expenditure programme for construction of the office centre. Local banks mostly provide shorter tenor loans with restrictive repayment schedule (amortizing structure without grace period) that limits the company's capacity to implement investment programme.
Environmental and Social Summary
Categorised B (ESP 2019) Environmental and social issues associated with the construction and operation of a four-storey office building building are site specific and will be addressed by adequate mitigation measures. Environmental and social due diligence (ESDD) has been carried out by the EBRD's Environment and Sustainability Department internally, including reviews of the completed E&S Questionnaire and documents provided by the client. The ESDD showed that the project has obtained the permits required by the national law. The site and project are not associated with significant environmental and social issues. The client is in compliance with national E&S regulations. An Environmental and Social Action Plan (ESAP) has been developed to ensure the project's compliance with the Bank's Performance Requirements (PRs). For the project, the company is required to comply with relevant PRs as well as submit an annual E&S report.
The ESDD showed the following: the project is located in an urbanised area, previously used as parking area of a nearby shopping centre with no past contamination issues. The project and the site are not associated with resettlement and economic displacement or other land acquisition issues as the project site was acquired by the client from another private entity. The ESAP developed for the project addresses environmental and occupational health & safety management and capacities, the third party life and fire safety audit and public and employee grievance mechanism. The Bank will monitor the project's environmental and social performance by reviewing an annual environmental and social report as well as site visit if deemed necessary.
Technical Cooperation and Grant Financing
1. Commercial, Technical Due Diligence and Valuation to be financed 100% by the EBRD Shareholders' Special Fund.
2. Legal Due Diligence to be financed 60% by the EBRD Shareholders' Special Fund and 40% by the Company.
Company Contact Information
Izmir street 8, Hyatt Tower 3
PSD last updated
29 Nov 2021
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Environmental and Social Policy (ESP)
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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).
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