The Asian Development Bank (ADB) is ready to provide a $5.9 million three-year loan to Avrora LLC, Azerbaijan’s third largest food and beverage manufacturer and distributor, Report informs referring to ADB.
The proceeds of the loan will finance Avrora’s working capital needs to produce and distribute staple foods like wheat flour, pasta, biscuits, and dairy products. It will also be used for additional operational expenses (OPEX) needed due to the COVID-19 pandemic.
The proposed project is aligned with three operational priority areas of ADB Strategy 2030: addressing remaining poverty and reducing inequalities, accelerating progress in gender equality, and promoting rural development and food security.
“This loan will ensure the production and distribution of basic food products for the domestic market, which are important commodities in the COVID-19 crisis. As production continues, Avrora will be able to retain its own workforce and the workforce along its supply chain in this time of increased difficulty and uncertainty,” the bank said in a message.
“The project will directly benefit Avrora and its employees. Aside from supporting the industry and the country’s strategy for recovery, ADB’s support to Avrora will ensure its continued operations and sustained employment of its workers. Avrora’s continuous operation will also benefit its partner brands, local suppliers, distributors, and their workers. The population will eventually benefit as the supply of staple foods in the market will be secured,” the bank noted.
The additional working capital will support increase of Avrora’s credit terms to its customers and quicker payments to its suppliers, to avoid supply disruptions, thus, ensuring basic food products availability, according to the ADB.