The provision of a Senior secured loan of up to € 8.0 million to Gemza Group LLC with the proceeds to be used for capital expenditure and working capital needs.
The Project will enable the Group to (i) expand local production capacity, (ii) manufacture more complex spare parts, and (iii) widen the range of maintenance, repair & overhaul services. It will also allow Gemza to carry out ongoing and pipeline projects.
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 following areas: "Competitive" and "Well-governed".
GEMZA GROUP LLC
Gemza Group LLC, together with its sister companies, supplies rotating equipment, manufactures spare parts and provides repair, maintenance and overhaul services for the rotating equipment (pumps and valves), in Azerbaijan, CIS Region, UAE and Turkey.
EBRD Finance Summary
Total Project Cost
Additionality stems from the tenor and repayment structure of the proposed loan, which is necessary to undertake the capex programme that includes the procurement of the manufacturing equipment for the new production workshop. Local banks mostly provide shorter tenor loans with restrictive repayment schedule (amortizing structure without grace period) that limits the company's capacity to implement the investment programme.
Environmental and Social Summary
Categorised B (ESP 2019). The ESDD was conducted on the basis of a review of the E&S questionnaires completed by the Client. The ESDD identified that the Client has certified environmental, health and safety, energy and quality management systems in place. The Client aims to implement resource efficiency measures through its operations. The Client has an approved list of suppliers and checks the availability of ESG policies. Sufficient environmental, health and safety personnel are employed. The Client also has a Human resources Policy and a grievance mechanism in place. The construction of the workshop and the supply of engineering, maintenance and repair services to third parties are not associated with any significant impacts and any impacts can be readily mitigated through implementation of the management systems. The land plot required for construction of the maintenance and repair workshop was acquired through a negotiated settlement and no physical or economic displacement occurred. The Project will not trigger any impacts on biodiversity or cultural heritage. While there is no formal stakeholder engagement plan in place, the information on the Company's activities are published on the corporate website. There is no GET share associated with this Project. The Project is considered to be Paris-aligned for climate-adaptation. The Client will need to comply with the Bank's Performance Requirements and submit annual environmental and social reports to the Bank.
Technical Cooperation and Grant Financing
Not yet confirmed.
Company Contact Information
Alasgar Gayibov , 10, Baku, Narimanov AZ1029, AZ, Baku/Azerbaijan
PSD last updated
11 Nov 2021
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