EIB eyes issuance of green bonds in Azerbaijan

The European Investment Bank (EIB) is considering the possibility of issuing green bonds in Azerbaijan, the bank told Report.

"The EIB has a strong track record of supporting green finance initiatives around the world, including the issuance of green bonds aimed at financing environmentally sustainable projects. Given Azerbaijan's commitment to diversifying its economy and investing in renewable energy and energy efficiency, there is a promising opportunity to attract EIB funding for issuing green bonds in the country, provided that it can establish a robust framework and pipeline of environmentally sustainable projects," the bank noted.

Green bonds have already been issued in Azerbaijan by several organizations. In particular:

Rabitabank issued bonds worth 10 million manats, with a 2-year maturity and an annual interest rate of 9.5%.

Unibank issued 20 million manats in bonds for a 36-month period with an annual yield of 11.5%.

SOCAR (State Oil Company of Azerbaijan Republic) also launched green bonds to support its SOCAR Green projects. The bonds, with a nominal value of $1,000, offer a 6% annual return, with a total issue size of $200 million and a maturity of 5 years.