Financed ProjectsDemirchi Business Centre.

Identification Code:

OP/10/0769

Total Operation Cost:

0

Maturity:

84 months

Operation Status:

Description and Purpose of the Operation:

Provision of a 7-year loan to Demirchi Development LLC, an Azeri private company, for finalizing the construction of Demirchi Tower, a 25-floor A-class office building in Baku and for refinancing existing loans taken by AGA Group companies for finalizing the construction of AGA Center, another office building of the Group.

Countries of Operation:

Azerbaijan (100,00 %)

Financial Product:

Loans

Sector:

Real Estate

Domain:

Private

Borrower/Client:

Demirchi Development LLC

Co-Financiers/Participants:

Guarantors/Sponsors:

Sponsors: 1) AGA Center LLC and 2) Caspian Investment Company LLC; Guarantors: 1) AGA Group of Companies CJSC (corporate guarantor) and 2) PASHA Bank (bank guarantor)

Developmental and Regional Cooperation Impact:

BSTDB provided the needed long-term funding for the development of AGA Group, a strong company operating in a non-oil business in the country. The BSTDB funding was provided at a reasonable cost and has been instrumental in enabling the Borrower to complete the construction of Demirchi Tower. New jobs are created during the construction and operation of Demirchi Tower. About 25% of supplies for the project are sourced from other BSTDB member countries, including Turkey and Ukraine.

Environmental Classification and Impact (summary):

The Operation has been screened according to the BSTDB's Environmental Screening Categories as category B0, with few limited EHS impacts, which are site specific and readily mitigated. Overall, the Project is being developed in accordance with local requirements and it is in compliance with applicable construction norms and rules, as well as environmental, worker’s health, and fire safety. For the purpose of this transaction no further EHS investigation is considered necessary.

Operation Leader:

General Industries, Transport, Tourism 2

E-mail:

gitt2@bstdb.org