Confirm cookie choices
Cookies are pieces of code used to track website usage and give audiences the best possible experience.
Use the buttons to confirm whether you agree with default cookie settings when using

DFF - Indart Holding



Project number:


Business sector:

Manufacturing and Services

Notice type:


Environmental category:


Approval date:

13 Dec 2022



PSD disclosed:

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."

Project Description

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 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

The DFF 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 ("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 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 and 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
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 EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

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

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. 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 sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. 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 (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).

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 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; how to submit a Request for review; or contact IPAM  via email to get guidance and more information on IPAM and how to submit a request.


Share this page:
GDPR Cookie Status