EBRD announces financial instruments to support Azerbaijani businesses

The European Bank for Reconstruction and Development (EBRD) provides various financial instruments to support businesses and investment projects in Azerbaijan, including loans, equity investments, and guarantees with flexible terms, EBRD representative in Azerbaijan Real Hajiyev said during a panel discussion at the 1st National Financial Accessibility Forum in Baku.

Report quotes him as saying lending remains one of the key areas of EBRD activity: "Companies can receive financing ranging from 1 million to 300 million euros, with an average of about 20 million euros. Loan terms typically range from five to seven years, and can reach up to 20 years for infrastructure projects. Loans are provided in both foreign and national currencies, making them accessible to a wide range of borrowers."

Hajiyev added that in addition to loans, the EBRD offers equity instruments, allowing companies to raise capital by selling shares. The bank's participation in equity can be up to 35%, which helps businesses develop without increasing their debt burden.

Furthermore, to support trade and international transactions, the EBRD provides guarantees ranging from 50,000 to 50 million euros with terms from five months to three years.

"These guarantees are used for trade financing, confirmation of bank obligations, and provision of cash advances," noted Hajiyev.

He added that EBRD financing is aimed at supporting business growth and modernization, improving resource efficiency, as well as mergers, consolidation, and privatization deals. The bank actively promotes the development of public-private partnerships and helps companies adapt to modern economic conditions, he concluded.