EBRD plans to support over $200M investment program for major Azerbaijani food retail player

The European Bank for Reconstruction and Development (EBRD) is considering allocating a senior loan of up to 126 million manats (approximately 65 million euros) to the Veyseloglu Group of Companies, one of the biggest players in the food and fast-moving consumer goods retail market in Azerbaijan.

The total cost of the group's large-scale investment program is about 373 million manats ($219.4 million), Report informs, citing the EBRD.

The funds allocated by the EBRD are part of a broader financial package being formed with the involvement of other credit institutions. As part of the project, resources will be directed towards expanding the company's retail network and vehicle fleet, as well as constructing a new distribution center within the country.

The Project is expected to benefit from a first-loss risk cover provided by the European Union under the EFSD+ Guarantee Agreement "Municipal, Infrastructure and Industrial Resilience Guarantee Programme Plus."

According to the EBRD, the project aims to facilitate the company's long-term development, modernize the logistics infrastructure and retail sector, and eliminate existing constraints in supply chains.

The key environmental impact will be achieved by financing more sustainable food logistics, including the construction of a distribution center that meets the EDGE certification standard, and investments in energy-efficient solutions for new retail facilities. The inclusive component of the project involves updating the group's HR policy, upskilling staff, and improving working conditions.

Currently, the project is at the preliminary review stage, and its official consideration by the EBRD Board of Directors is scheduled for December 2, 2026.

The Veyseloglu Group of Companies was established in 1994 and operates in distribution, retail, logistics, and production.