The European Bank for Reconstruction and Development (EBRD) is boosting supply chain resilience in Azerbaijan through a senior secured loan of up to €5.6 million to existing customer Gemza Group for the construction of three modern and energy-efficient dry warehouses with a gross lettable area of 24,000 square metres. Gemza operates in the manufacturing and services sector, but is now diversifying its revenue sources by entering the warehouse business.
The loan is set to address the shortage of modern warehouses in Azerbaijan, strengthening the country’s supply chain resilience and enhancing warehouse capacity across the Middle Corridor. The agreement also includes the on-site installation of solar panels to generate up to 1 MW of electricity, cutting energy costs significantly.
The European Union, under its EU4Climate initiative, will help Gemza secure the EDGE certification (Excellence in Design for Greater Efficiency) for its new warehouses as well as provide it with a grant to install on-site solar panels through the EBRD’s Finance and Technology Transfer Centre for Climate Change (FINTECC). Part of the legal due diligence costs were covered by the EBRD’s Sustainable Infrastructure Fund (SIF)*
Gemza Group is a successful local enterprise in Azerbaijan providing engineering, procurement and repair services. It produces spare parts for mechanical equipment and carries out repair works at its facility, working with clients in Türkiye, United Arab Emirates and some Central Asian markets.
The EBRD is a leading institutional investor in Azerbaijan. Since the start of its operations there in 1992 the Bank has invested over US$ 3.65 billion in 185 projects in the financial, corporate, infrastructure and energy sectors, with most of those investments in private enterprises. The Bank’s strategy in the country focuses on helping Azerbaijan to diversify its economy and develop the non-oil private sector.
*Donors to the Sustainable Infrastructure Fund are: Canada, Finland, Germany, Ireland, Japan, Korea, Luxembourg, the Netherlands, Norway, Spain, Sweden, Switzerland, TaiwanBusiness-EBRD Technical Cooperation Fund and the United Kingdom.