Turkmen Footwear Manufacturer Secures Financing From EBRD

Turkmen Footwear Manufacturer Secures Financing From EBRD
It entered the footwear market in 2015 by launching the production of flip flops.

Family run business Arassa Rysgal was able to secure financing from the European Bank for Reconstruction and Development (EBRD) in the amount of a US$ 2 million to invest in a construction of additional production workshops and warehousing, purchase new equipment to launch the first production of trainers and Wellington boots in Turkmenistan.

Arassa Rysgal’s first enterprise involved imports and wholesale trade of dried fruit and nuts, which were sold under the brand name Shabakja. It entered the footwear market in 2015 by launching the production of flip flops. Today, with the company’s daily production rate reaching 24,000 pairs, their products are sold in all five regions of Turkmenistan.

With further expansion in mind, the company started seeking the finance to construct workshops and purchase new equipment to diversify the production. With EBRD’s assistance, they were connected with local consultants. They helped the company with restating financial statements under the International Financial Reporting Standards (IFRS) and developing a relevant business plan for the investment project, subsequently securing a US$ 2 million investment from the EBRD.

When the new workshops will be finished, company’s workforce is expected to double and the turnover to increase 28%.