The European Bank for Reconstruction and Development (EBRD) has agreed to provide loan to Kazakhstan’s Caspian Beverage Holding to expand its beverage distribution network.

As part of this initiative, EBRD will be providing a five-year loan of up to $4m to Caspian Beverage Holding.

The beverage company will use the money to purchase ozone-friendly refrigerators in line with the requirements of the Environmental Protection Agency (EPA).

Additionally, the introduction of technology is being supported by the Global Environment Facility under the EBRD’s Resource Efficiency Transformation Programme (RESET) through a grant of $48,000.

The technology is expected to reduce 620 tonnes of carbon emissions annually while reducing energy consumption by 40% compared to existing units.

Additionally, the funds will be used by the company to support its working capital needs, including the acquisition of beer kegs and other specialised equipment.

Through this loan facility, Caspian Beverage Holding expects to increase the footprint of its beverage products as well as improve operational efficiencies across the company and its subsidiaries.

EBRD has supported the project through its agribusiness and SME development strategies and has been financed by the Government of Kazakhstan and the EBRD Special Shareholders Fund.

To date, EBRD is said to have invested €8.63bn in the Republic of Kazakhstan to support small businesses as the country moves to reform its economy and strengthen its private sector.

Last July, EBRD agreed to provide a loan of $25m to support operations of Kazakhstan-based food and beverages manufacturer RG Brands.

RG Brands is engaged in the production of a wide range of non-alcoholic beverages, including juices, soft drinks, UHT milk, tea, water and franchised brands. It is reported to be one of the largest private sector clients of the EBRD in Kazakhstan.