Loan Agreement without a sovereign guarantee signed with EBRD
"Azerbaijan Caspian Shipping" CJSC (ASCO), Azerbaijan Investment Holding (AIH) and the European Bank for Reconstruction and Development (EBRD) have signed a loan agreement without a sovereign guarantee for the financing of two Handysize dry cargo vessels.
Mikayil Jabbarov, Minister of Economy, EBRD Governor for the Republic of Azerbaijan, Ruslan Alikhanov, Chief Executive Officer of AIH, Rauf Valiyev, Chairman of the Board of ASCO, Alkis Vryenios Drakinos, Regional head of the Caucasus for the EBRD, and Nataly Mouravidze, Head of the Bank’s operations in Azerbaijan participated at the signing event.
The loan agreement was signed by Ruslan Alikhanov, Chief Executive Officer of AIH, Rauf Valiyev, Chairman of the Board of ASCO, and Alkis Vryenios Drakinos, Regional head of the Caucasus for the EBRD. The total amount of the loan is 60 million US dollars. The loan agreement will consist of two tranches. 70% of the vessel purchase will be financed by the loan funds allocated by EBRD and 30% by ASCO's internal resources.
The event highlighted the interest shown by international financial institutions, including EBRD, and the support provided by various financing instruments to the projects carried out in our country, as well as to the large-scale projects in the field of transport and transit cargo transportation, which is an important component of the non-oil sector.
It was noted that EBRD’s loan provision to ASCO without a sovereign guarantee is an indicator of successful reforms carried out in SOEs, the presence of corporate governance and accountability systems in accordance with best practices, transparency in operations and sound financial standing.
It was emphasized that this cooperation with EBRD is a new stage in the development of shipping, and the loan agreement signed today serves to expand the geographical area of ASCO’s operations in international waters beyond 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 vessels that meet the latest environmental requirements of the International Maritime Organization.
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