Azerbaijan, EBRD sign major loan agreement PHOTO

Azerbaijan Caspian Shipping Company (ASCO) and the European Bank for Reconstruction and Development (EBRD) have signed a Loan Agreement.

Azerbaijan’s Minister of Economy Mikayil Jabbarov made a post on his X account in this regard, Report informs.

“As part of our country’s successful collaboration with the European Bank for Reconstruction and Development (EBRD), a Loan Agreement has been signed between EBRD and “Azerbaijan Caspian Shipping” CJSC (ASCO). The implementation of this agreement will contribute to strengthening regional communications and trade relations, increasing transit cargo transportation and enhancing competitiveness through diversified route directions,” the minister posted.

According to the EBRD, ASCO has been granted a loan of $42 million (€38.71 million). The total cost of the project is $60 million.

"ASCO will use the proceeds to expand its merchant fleet by acquiring two Handysize dry bulk carriers in international waters, which will improve regional maritime connectivity and trade. The new vessels will support Azerbaijan's attempts to strengthen the country's position as a crucial link on the expanded Middle Corridor route connecting Central Asia and the South Caucasus to global markets.

The EBRD will also support ASCO in improving its corporate governance practices and climate change-related disclosures to better address decarbonization in the shipping sector and pave the way for ASCO's first sustainability-related financial instruments," the bank notes.

ASCO is one of the largest shipping companies in the region and plays an important role in maritime traffic on this vital trade route.

The EBRD is an important institutional investor in the Caucasus and Central Asia. In Azerbaijan, the Bank has invested over €3.6 billion in 189 projects to support the diversification of Azerbaijan's economy.