Translated version of this PSD: Russian
The provision of debt financing to Hamle Company Ltd (the "Company") based in Kazakhstan in the amount of up to EUR 50m for financing the Company's 2016/17 investment programme and refinancing needs (the "Project").
Financing of procurement of new machinery, financing of permanent working capital needs, and refinancing of the existing hard currency loans. The Bank will support a company which has been in a transformation phase since 2013 and now requires investment into new machinery and related capital expenditures to further enhance its efficiency and productivity.
The transition impact will mainly derive from supporting the Company's turnaround phase while successfully restructuring its operations to overcome the main challenges it has been facing during recent years. In particular, the transition impact will derive from demonstration of successful restructuring via (i) supporting investments that will increase efficiency and profitability, and (ii) implementation of an innovative distribution strategy.
HAMLE COMPANY LTD
Is a limited liability partnership organised and existing under the laws of the Republic of Kazakhstan, involved in confectionary production and 100% owned by Yildiz Holding.
EBRD Finance Summary
A loan consists of Tranche 1 of KZT equivalent of EUR 25m to be used for finacing of both capex and working capital and Tranche 2 of EUR 25m (with an option to convert to KZT) to be used for refinancing.
Total Project Cost
Environmental and Social Summary
Categorised B (ESP 2014). The environmental and social issues associated with the expansion and refurbishment of the Company#s existing production lines are well understood by the Bank from previous Projects in this sector, and are readily mitigated through standard mitigation measures.
Environmental and Social Due Diligence (ESDD) was undertaken through the review of a completed ESDD questionnaire, detailed Q&A with the Company management on the issues covered by the questionnaire, and a follow-up site visit that was conducted by Bank staff in April 2016. ESDD identified that all required environmental, and labour operational permits were in place, and that reporting to the regulatory authorities was in line with requirements. ESDD did not identify any significant environmental or social risks, and the Company was found to have good overall
environmental, food safety, occupational health and safety, and labour practices.
The site visit confirmed that all utilities are supplied to the site via municipal networks with the exception of water supply which comes from a well located on-site. The well is permitted and is subject to regular quality control. Waste discharges are closely monitored and no exceedances have
There is retrenchment planned in the period 2016/2017, and that is expected to occur as part of natural attrition. Evaluation of historical staff turnover rates backs the Company management's opinion that any reduction in labour force can be accounted for via this route. However, the potential for compulsory redundancies remains and any such activity will need to be conducted in line with Kazakh labour law and PR2 requirements. A line item has been added to that effect in the Environmental and Social Action Plan (ESAP). ESDD identified a number of minor gaps related to documenting and formalising the current EHS policies and procedures, and related training, that are also addressed in the ESAP. The ESAP has been fully agreed with the Company.
The Loan enabled the Group to finance procurement of new machinery, financing of permanent working capital needs, and refinancing of the existing hard currency loans. The Project supported the Company's transformation phase and further enhanced its efficiency and productivity. The transition impact derived from supporting the Company's turnaround phase while successfully restructuring its operations to overcome the main challenges it had faced over the years. In particular, the transition impact was be derived from demonstration of successful restructuring via (i) supporting investments that increased efficiency and profitability, and (ii) implementation of an innovative distribution strategy. Besides, the Project also supported Ulker Group's plans to expand operations in the Central Asia and Russian Fed. by increasing total production capacity in Kazakhstan. Despite significant deteriorated global market conditions due to the coronavirus pandemic, Ulker Group continued its robust financial and operational performance since the signing of the Loan in 2016.
Company Contact Information
Hamle Company LTD Almaty region , Karasay province, Kaskelen city Abilay Khana st. No: 3 A
For business opportunities or procurement, contact the client company.
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Tel: +44 20 7338 7168
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