Agreement signed with EBRD on allocation of loan without state guarantee
"Azerbaijan Caspian Shipping" CJSC (ASCO), Azerbaijan Investment Holding (AIH) and the European Bank for Reconstruction and Development (EBRD) have signed a loan agreement for the financing of 2 "Handysize" type dry cargo ships without a state guarantee.
Mikayil Jabbarov, head of the European Bank for Reconstruction and Development, Minister of Economy, Ruslan Alikhanov, the chief executive director of AIH, Rauf Valiyev, Chairman of the Board of ASCO, Alkis Vryenios Drakinos, Regional head of the Caucasus for the EBRD and Nataly Mouravidze, the head of the EBRD's Permanent Representation in Azerbaijan participated at the event held in connection with this.
The loan agreement was signed by Ruslan Alikhanov, the Chief Executive Officer of AIH, Rauf Valiyev, the Chairman of the Board of ASCO, and Alkis Vryenios Drakinos, the regional head of the Caucasus for the EBRD. The total cost of the project is 60 million US dollars. The loan agreement consists of 2 tranches, and 70% of the purchase of ships will be financed by the loan funds allocated by EBRD, and 30% by ASCO's internal resources.
The importance of the interest made by international financial institutions, including the EBRD, and the support given by various financing instruments to the projects implemented in our country, as well as to the large-scale projects implemented in the field of transport and transit cargo transportation, which is an important component of the non-oil sector, was noted at the event.
It was pointed out that the direct allocation of a loan to ASCO by the EBRD without a state guarantee is an indicator of successful reforms carried out in enterprises whose shares are owned by the state in Azerbaijan, the existence of corporate management and accountability systems built in accordance with international principles, transparency in operations and ensuring a healthy financial situation.
It was emphasized that the new cooperation with the EBRD is a new stage in the development of shipping, and the loan agreement signed today serves to expand the geographical area of operation of the JSC and further increase the cargo transportation potential of our country outside the Caspian Sea.
In addition, the loan agreement signed within the framework of cooperation with ASCO will contribute positively to the implementation of global climate change challenges. Thus, the loan agreement provides for the purchase of modern dry cargo ships that meet the latest environmental requirements of the International Maritime Organization.