EBRD discloses volume of loans for green projects

By Azernews

By Leman Mammadova

European Bank for Reconstruction and Development (EBRD) assists Azerbaijan to diversify the national economy by supporting competitiveness and effective management.

As of today, the EBRD allocated 350 million euros for implementation of 26 green projects in Azerbaijan, EBRD has told Trend.

The Bank noted the support provided to Baku Electronics, which is the leading company in the field of electronics and household appliances in Azerbaijan.

"EBRD has been cooperating with Baku Electronics for a long time. The cooperation began in 2007 when  Baku Electronics received its first loan to finance the construction of a new store. The Bank supported Baku Electronics with two more loans in 2010 and 2012 and assisted expanding its activities," said the message.

As a result of the successful expansion of its activities, the company developed an investment program in 2013 that included the construction of new techno-stores, which were financed with an EBRD loan of $13 million.

The latest transaction with Baku Electronics, signed in June 2018, aimed at financing the needs of the working capital of the company, which increased due to the opening of new stores. The company also expanded its product range and introduced a new segment consisting of textiles.

EBRD is a leading investor in Azerbaijan. The country has been cooperating with EBRD since 1992 to achieve further economic development. One of the main priorities of EBRD in Azerbaijan is to support the local corporate sector with direct financing.

EBRD invests in debt capital-market instruments as well as in equity. These transactions promote higher standards of corporate governance while also fostering capital market development and promoting alternative sources of financing. The EBRD also issues its own local-currency-denominated bonds, or bonds linked to local currency, on the international and domestic markets for its funding purposes.

In total, the Bank has allocated almost 3.3 billion euros for projects in various sectors in Azerbaijan. The largest share of investments accounts for the energy sector (50 percent), while 42 percent accounts for infrastructure projects. The rest is for financial, industrial and commercial projects.

The Bank continues working with the Azerbaijani government and the private sector to make further investments in the country. At the moment, the number of active EBRD projects in Azerbaijan is 45, and in total, the EBRD has implemented 167 projects in Azerbaijan. The current portfolio of projects is worth 1.4 billion euros. Major share of investments accounts for to the private sector.

Recently, EBRD has introduced its new country strategy covering 2019-2024 to help Azerbaijan develop its non-oil sector, strengthen local lenders and boost investment in the green economy.

Presently, EBRD pays special attention to the development and financing of renewable energy projects in Azerbaijan. The Bank is also interested in the development of SMEs and financial sector in the country while helping the economy to diversify further.