The risk portfolio of Italy's state export credit agency SACE in Azerbaijan currently exceeds €100m, Paola Valerio, Head of Institutional Relations at SACE, said at the "From the Caucasus to the Mediterranean" conference in Rome.
She noted that that the agency's existing projects in Azerbaijan are already well diversified, covering energy, agribusiness and mechanical engineering.
"However, the potential for cooperation is much broader. We see prospects in renewable energy, as well as in the chemical and petrochemical industries. To support Italian expertise in these areas, we are developing strategic partnerships not only with SOCAR, but also, for example, with the Azerbaijan Investment Company, with which relevant agreements have been signed," she said.
Valerio noted that SACE offers a wide range of insurance and financial instruments, as well as advisory support to facilitate companies' entry into new markets, including Azerbaijan. Support is provided at all stages of export project implementation.
At the initial stage, when a company is exploring a new market or sector, the agency helps structure a prospective transaction. When participating in international tenders, SACE provides bid bond guarantees. If a bank issues a guarantee for a company's participation in a tender, the agency may provide a counter-guarantee, expanding the banking system"s capacity in the exporter's interest.
After winning a tender, when performance guarantees are required, SACE provides advisory and guarantee support, facilitating the issuance of the necessary instruments.
During the preparation phase of deliveries, companies often require additional liquidity. With a SACE guarantee, working capital loans can be obtained on more favorable terms, she said.
Moving to the export phase itself, the agency offers export credit insurance directly to exporters. This enables them to grant Azerbaijani counterparties medium- and long-term payment deferrals better aligned with their cash flows.
"Moreover, with a SACE guarantee, an exporter can discount receivables at a bank and receive an advance on more favorable terms. These conditions become even more attractive when combined with support from Italy's financial institution SIMEST, which is part of the Cassa Depositi e Prestiti (CDP) group. The combination of a SACE guarantee and SIMEST subsidies allows the exporter to promptly receive the full contract amount on preferential terms," she underlined.
Valerio added that for large-scale projects - including equipment supplies, construction of plants and infrastructure facilities - SACE guarantees loans to financing institutions. "This makes it possible to provide long repayment tenors and flexible schedules: the standard export credit term is up to 15 years, and for renewable energy projects up to 22 years," she said.