EBRD to provide second loan to Azerbaijani equipment manufacturer

The European Bank for Reconstruction and Development (EBRD) has approved allocation of a senior secured loan of up to 5.6 million euros to Gemza Group LLC for the construction of three modern warehouses, Report informs referring to the bank’s message.

The total cost of the project is 19.105 million euros.

This project will help the company expand into a new line of business and diversify its revenues.

Gemza Group supplies rotating equipment (pumps and valves), manufactures spare parts and provides repair, maintenance and overhaul services in Azerbaijan, some of the Central Asian countries, UAE and Turkiye. The proposed transaction will be the Bank's second engagement with the Borrower.

In November last year, the bank provided the company with a loan of 8 million euros, which were provided for capital expenditures and working capital needs.

“Additionality stems from the tenor and repayment structure of the proposed loan, which is necessary to undertake the Project. Local banks mostly provide shorter tenor loans with restrictive repayment schedules. The Client also makes use of the EBRD’s expertise in energy and resource efficiency to achieve the EDGE certification,” reads the message.

The project also includes technical cooperation to identify opportunities to improve resource and energy efficiency, to be funded by the EU under the FINTECC EU4Climate program.