By Rezo Bitsadze
Financing to boost local SME competitiveness and green growth
The European Bank for Reconstruction and Development (EBRD) is extending a loan of up to US$ 7.5 million or €6.9 million in local currency to Bank Respublika, one of Azerbaijan’s leading commercial banks. The partner bank will on-lend the proceeds to small and medium-sized enterprises (SMEs).
The loan aims to boost the competitiveness and green transition of local SMEs, with half of the proceeds expected to be directed to green investments. This will support businesses in adopting energy-efficient technologies, utilising renewable energy and minimising their environmental impact.
The transaction will benefit from a first-loss guarantee under the European Fund for Sustainable Development Plus (EFSD+) programme, backed by the European Union.
The EFSD+ financial inclusion programme is designed to empower micro, small and medium-sized enterprises (MSMEs) and foster their competitiveness and growth. Through strong financial tools, the programme aims to encourage intermediaries to direct new lending to those firms that need it most.
Bank Respublika is a longstanding EBRD partner and one of Azerbaijan’s leading commercial banks. It has a strong focus on the SME sector and financial inclusion, supporting the growth of local businesses across the country.
The EBRD is a leading institutional investor in Azerbaijan, having invested over €3.6 billion in 190 projects in various sectors of the economy. The Bank’s strategy focuses on supporting Azerbaijan’s economic diversification and the development of its private sector.
