EBRD lends $29 mln to Uzbek edible oil manufacturer Top Oil to expand production

BAKU. Oct 14 (Interfax) - The European Bank for Reconstruction and Development has approved a senior secured loan of up to $29 million or 25 million euros to Top Oil JV LLC, one of the leading edible oil manufacturers in Uzbekistan, to finance the company's permanent working capital needs, the bank said on its webiste.

The Project is expected to support the company's continued growth and strengthen its competitive position in the domestic edible oils market. The funding will enable the company to increase production of edible oil products, which will support import substitution through increased local production of edible oil products at competitive quality and pricing.

The project will also support the company's green initiatives: the EBRD will provide an incentive of up to 100,000 euros to encourage the company to increase the share of renewable energy in its total energy consumption and to install wastewater treatment equipment.

In addition, the EBRD will provide technical cooperation funds to engage an external consultant to develop a dual degree programme, train up to 60 students at a local vocational college, and develop a sanctions compliance programme.

Overall project costs are 26 million euros.

Top Oil JV LLC, established in 2015, operates under the Milter brand and is one of the leading edible oil and margarine manufacturers in Uzbekistan with around 20% of the market.

The EBRD has invested almost $7 billion in Uzbekistan to date across more than 200 projects, with most of the funds supporting private entrepreneurship. The country has been the leading recipient of EBRD funding in Central Asia for each of the past six years.