The European Bank for Reconstruction and Development, alongside Germany's Development Finance Institution, DEG, have announced plans to help fund the distribution and warehouse operations of Azerbaijan's largest retail chain, Araz.
The two bodies will fund the group's plans with loans worth €5 million each.
Araz runs 122 stores in Azerbaijan, including stores under its own banner as well as stores trading as Spar outlets.
The funding will enable Araz to more than triple its warehousing capacity, from 12,600 square metres to 42,600 square metres, as well as increase the overall efficiency and profitability of the business, the retailer said.
The warehouse will be expanded in line with sustainability standards, with Araz committed to achieving sustainability certifications such as BREEAM-Good or LEED-Silver for its facilities in the future.
Fast-Growing Sector
“By financing Araz, the EBRD is supporting the country’s fast-growing retail sector," commented Ivana Duarte, the head of EBRD in Azerbaijan.
"Modern retail operations are a boost for local producers and also benefit customers, bringing greater efficiency, price transparency, higher standards of service and quality and safety of food and other goods.”
To date, the EBRD has invested close to €3.3 billion in almost 170 projects around Azerbaijan, while Germany's DEG has been active in the market since the early 2000s.
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.
