EBRD sets new deadlines for approving loan for Azerbaijan Caspian Shipping Company

The European Bank for Reconstruction and Development (EBRD) plans to approve a long-term loan for Azerbaijan Caspian Shipping Company (ASCO) CJSC at its Board of Directors meeting on December 13, Report informs, citing the bank.

The loan amount was not specified, although it was previously mentioned that a first-priority secured loan of $60 million could be provided. ASCO also noted that there is currently no information on the size of the loan.

The EBRD twice postponed the consideration of this project by the Board of Directors. The review date was initially set for April 26, then July 12.

The loan proceeds are intended for the purchase of ships under the international expansion strategy of the shipping company.

The EBRD believes that this project will help ASCO expand its merchant fleet in international waters beyond the Caspian Sea, improving regional connectivity and trade relations: The bank notes that the project will contribute to the competitiveness by acquiring additional vessels to increase the company's cargo capacity and increase flexibility of routes.

The company also uses the EBRD's expertise in energy and resource efficiency to achieve higher environmental standards and address the risks associated with the transition to carbon neutrality, the bank notes.

The Azerbaijan Caspian Shipping Company CJSC was created in 2014 and is 100% state-owned. Its authorized capital is 440.051 million manats ($258.85 million).