DFF - Indart Holding

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Overview

A senior secured loan of up to $4.2 million, consisting of three elements: (i) $1 million to refinance existing indebtedness, (ii) $1.9 million for capital expenditure to increase the recycling capacity and improve energy efficiency, and (iii) $1.3 million to procure scrap batteries ("Project").

Project ID 53479

Status Cancelled

Location

Azerbaijan

Business Sector

Manufacturing and Services

Notice Type

Private

Company Contact Information

Mr. Rauf Rustamov
r.rauf@indartholding.com
+994502787003
www.azlead.com.az
Insaatclar Street No. 58, Sumgayit Industrial Zone, Azerbaijan

Project ID 53479

Status Cancelled

Location

Azerbaijan

Business Sector

Manufacturing and Services

Notice Type

Private

Environmental Category

Approval Date

13 Dec 2022

Disclosure date

12 Dec 2022

As per section 1.4.2 (iii) of the Directive on Access to Information: "For Projects approved by Bank management where the Board of Directors has delegated the approval authority, the PSD shall be disclosed at the start of the relevant no-objection notification period to a member country of the Bank in accordance with Article 13 (iii) of the Agreement Establishing the EBRD."

DFF - Indart Holding (Azerbaijani) (PDF, 0.64MB)

Project description

Project objectives

The Project will finance the Company's increase in secondary lead production capacity from 7.2ktpa to 17.3ktpa, increase lead recovery rates and improve the overall environmental and energy efficiency performance of Azlead. Furthermore, the Bank's engagement has introduced ESG undertakings that represent best practice for SMEs in the EBRD region.

Transition impact

ETI Score:80

SME framework primarily targets the "Competitive" quality by helping SMEs to restructure and become more efficient. Sub-projects can target any of the other transition qualities as a secondary objective. The Project supports framework objectives by supporting an SME in the areas of "Competitive" and "Green" given the circular economy nature of its operations.

Client information

AZ-LEAD LLC

Az-Lead LLC ("Azlead" or the "Company"), incorporated in Azerbaijan, engages in the production of secondary refined lead via the recycling of end-of-life lead-acid batteries.

EBRD Finance Summary

USD 4,200,000.00

Total project cost

USD 4,400,000.00

Additionality

Additionality stems from the longer tenor and grace period that are necessary to structure the Project as local banks mostly provide shorter tenor loans with restrictive repayment schedules. The Bank's engagement will introduce significant ESG undertakings and improvements that exceed national regulatory requirements.

Environmental & Social Summary

Category B (ESP 2019). Environmental and social issues associated with the modernization and expansion of a lead battery recycler and smelter and be readily assessed and mitigated based on an ESDD. The Bank commissioned an independent consultant to undertake an ESDD of the plant and provide strategic advice on ESG management systems and reporting. The ESDD confirmed that the Company is adequately managing EHS issues and has the capacity to implement the Bank's PRs. The Project will result in substantial environmental improvements. The Project qualifies for GET 76% and is Paris Aligned allowing for the recycling of substantial resources i.e. in line with EU circular economy policies and EU Taxonomy.

The ESDD confirmed that the Project enables the significant re-purposing and re-manufacturing of domestic end-of-life LABs that would have otherwise ended up in landfills. The capex Loan proceeds will also retrofit the existing furnaces improving energy efficacy and environmental abetment through the insulation of new bag filters. These will reduce dust, organic compounds and SOx emissions in line with EU requirements and enable fuel switch from mazut to natural gas that will lead to Scope 1 emission savings per tonne of lead. The Company will also monitoring emissions and the improvement will enable better worker health and safety. The ESDD confirmed that the Company has a robust HR system and H&S systems, with no reported cases of lead poisoning.

The Project included the piloting of a draft ESG reporting guideline being developed by the Bank for SMEs, which is aimed take into account EU reporting requirements under the EU CSRD. Based on the assessment by the independent consultant an ESG strategy has been developed for the Company and agreed with Azlead that has robust action plans in line with international standards. To follow through on these commitments, a management system has been set up to enable the ongoing identification of ESG risks and impacts. This will ensure the correct and continuous data collection that will in turn be reported for which templates have also been created.

Based on the ESDD an ESAP has been agreed which will allow for the Company to comply with the Bank's PRs. An NTS of the Project will be disclosed in English and Azeri. The Bank will monitor the implementation of the Project through review of annual reports provided by the Company.

Technical Cooperation and Grant Financing

The Project benefits from a first loss risk cover and TC for project preparation from the European Fund for Sustainable Development (EFSD).

Legal Due Diligence to assist with preparation of the legal documentation (EUR 38,500);
Environmental Due Diligence to asses Azlead's compliance to EHS standards and the Bank's PRs, preparation of tailored ESAP, SEP and NTS (EUR 30,000).

Company Contact Information

Mr. Rauf Rustamov
r.rauf@indartholding.com
+994502787003
www.azlead.com.az
Insaatclar Street No. 58, Sumgayit Industrial Zone, Azerbaijan

Implementation summary

PSD last updated

12 Dec 2022

Understanding transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with the EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and its associated Environmental and Social Requirements (ESRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the ESRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation, and to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about the environmental and social (E&S) 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 also requires its clients to disclose information, as appropriate, about the risks and impacts of 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 of the Bank's activities 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 EBRD believes that identifying and resolving issues in the project assessment and approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts andhelps to monitor integrity risks in projects post-investment.

OCCO is further responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, either within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. OCCO will follow-up all matters reported. It will review all matters reported. 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, which entered into force on 1 January 2025, sets out how the EBRD discloses information and consults with its stakeholders to promote better awareness and understanding of its strategies, policies and operations. 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 (for example, 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 the 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 and how to submit a Request for review. Alternatively, contact IPAM by email at ipam@ebrd.com for guidance and more information on IPAM and how to submit a request.

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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DFF - Indart Holding

Overview

Company Contact Information

Project description

Project objectives

Transition impact

Client information

EBRD Finance Summary

Total project cost

Additionality

Environmental & Social Summary

Technical Cooperation and Grant Financing

Company Contact Information

Implementation summary

PSD last updated

Understanding transition

Business opportunities

General enquiries

Environmental and Social Policy (ESP)

Integrity and compliance

Access to Information Policy (AIP)

Independent Project Accountability Mechanism (IPAM)