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Azeri Glass Factory

Azerbaijan | Financial Institutions

Identification Code:: OP/04/0440
Total Operation Cost:: — EUR
Maturity:: 60 months
Operation Status:: BSTDB Approved Amount – Approval Date

5.000.000 EUR – 24 Sep 2004
: BSTDB Signed Amount – Signed Date

5.000.000 EUR – 21 Jun 2005
: Status:
Completed
Description and Purpose of the Operation:: Provision of a long-term loan facility to International Bank of Azerbaijan, for on-lending to a private Azeri company (Caspian Management Systems Ltd.), for the purpose of construction and operation of a glassware factory in Baku industrial zone. The plant will sell its products (glass bottles and jars) mainly to Azeri clients (manufacturers of canned food and beverages), who currently import such products. The factory will have a production capacity of about 50 million bottles/year and 40 million jars/year. Key raw materials for the plant will be sourced from Azerbaijan and from Russia and Ukraine. The company will purchase new, modern equipment imported from Italy. It will manufacture high quality glassware that meet international standards and are expected to have prices lower than the prices of the currently imported products.
Countries of Operation:: Azerbaijan (100,00%)
Financial Product:: Loans
Sector:: Financial Institutions
Domain:: Private
Borrower/Client:: International Bank of Azerbaijan, for a facility to be on-lent for the commissioning of the Azeri Glass Factory by Caspian Management Systems Ltd. (CMS), an Azeri private company.
Co-Financers/Participants:: —
Guarantors/Sponsors:: —
Developmental and Regional Cooperation Impact:: The Operation is expected to (i) provide long-term funding for private capital investment in the Azeri non-oil industry, such funding being very scarce in Azerbaijan, (ii) enable the International Bank of Azerbaijan to strengthen its support to the development of the private sector in Azerbaijan, (iii) contribute to creating about 100 new jobs, (iv) have imports substitution effects.
Environmental Classification and Impact:: The Borrower has comprehensive internal environmental assessment procedures, which meet the BSTDB's EH&S requirements, as well as the national requirements. Nevertheless, the Borrower is required to conduct an environmental assessment of the project before its financing and take measures to adjust appropriately environmental policy and procedures and integrate them accordingly in its portfolio management. The Borrower is required to monitor the execution of the project until concluded.
Operation Leader:: General Industries, Transport, Tourism 2
E-mail:: gitt2@bstdb.org