EBRD to allocate loan to Azerbaijan's Saloglu company to cut carbon dioxide emissions
BAKU, Azerbaijan, Dec. 18
By Eldar Janashvili - Trend:
Saloglu, the leading furniture producer and retailer in Azerbaijan, will increase its competitiveness and cut its carbon footprint thanks to a loan of up to 7.6 million manat (4 million euros) from the European Bank for Reconstruction and Development (EBRD), Trend reports referring to the EBRD press service.
The loan will allow the company to build an energy-efficient production plant, a warehouse and a flagship store in Baku, according to the report.
Saloglu will also benefit from an international advisory project, funded by South Korea through the EBRD’s Small Business Impact Fund, to improve its supply chain and inventory management practices.
The company will make its existing and new facilities more sustainable by installing 3 megawatt biomass boilers to produce heat from production waste instead of from natural gas.
This green investment will cut the equivalent of more than 1,000 tons of carbon dioxide emissions a year, demonstrating better and more sustainable practices with regard to energy sources.
The investment will be complemented by Global Environment Facility-funded grants provided under the EBRD’s Finance and Technology Transfer Center for Climate Change (FINTECC) program.
Saloglu has previously worked with EBRD to increase its competitiveness under the Bank’s advisory program for small businesses, funded by the EU and the EBRD’s Small Business Impact Fund.
With the help of consultants, the company developed a business plan, conducted market research and improved its accounting system to meet international standards.
The EBRD is one of the leading institutional investors in Azerbaijan, where it focuses on supporting efforts to diversify the economy and develop the private sector.
To date, the EBRD has invested 3.3 billion euros in 168 projects in Azerbaijan.
The bank also provides business advice to local small and medium-sized enterprises and has helped more than 1,000 firms to improve their performance and growth.
Founded in 2000, the company specializes in producing soft furniture sets for living rooms and bedrooms, including items such as mattresses and chairs. Saloglu also distributes Turkish and US brands in Azerbaijan.