Allianz Trade is ready to finance renewable energy projects in Azerbaijan
Allianz Trade has offered preferential insurance and financing terms for Azerbaijani companies purchasing German goods and services, with a focus on "green" projects.
Abdulrahman Sadikhli2 min read
The German export credit agency Allianz Trade has announced its readiness to finance projects in Azerbaijan, prioritizing the renewable energy sector. This was stated by Annika Richter-Rahman, the agency's underwriter for Africa, Eastern Europe, the South Caucasus, and Central Asia, during a webinar dedicated to infrastructure development and energy storage solutions.
According to Richter-Rahman, the agency's insurance coverage protects German exporters against commercial and political risks associated with non-payment, which helps reduce the cost of financing for Azerbaijani partners. The agency does not set fixed limits on support volumes, which opens up significant opportunities for the implementation of large-scale projects.
The terms for providing guarantees depend on the credit term. For short-term operations, the agency does not require additional collateral. For medium- and long-term financing, Azerbaijani counterparties purchasing goods and services from German suppliers are generally required to provide bank guarantees or audited financial statements.
The standard loan repayment period is up to 15 years. However, for environmental and "green" initiatives, Allianz Trade is prepared to extend this period to 22 years. Furthermore, more flexible requirements for the "German content" in contracts are provided for such projects.
While for standard transactions the share of German goods and services in the project cost must be at least 51%, for environmental projects this threshold is reduced to 30%. This measure is aimed at stimulating cooperation in the fields of sustainable development and energy transition.
Source: report.az
