German credit agency offers Azerbaijan financing for green projects

German export credit agency Allianz Trade is ready to finance projects in Azerbaijan, particularly in the renewable energy sector, without imposing limits on the volume of support, Annika Richter-Rahman, Underwriter at Allianz Trade, has said.

Speaking during a webinar titled Infrastructure Development, E-Mobility and Renewable Energy Storage Solutions in Azerbaijan, she explained that the agency’s insurance coverage protects German exporters against commercial and political risks associated with non-payment while also helping significantly reduce financing costs, Caliber.Az reports, citing local media.

“Our coverage policy regarding Azerbaijan is quite open. We have no fixed limits, which means there are no restrictions on the volume of support. For short-term coverage, we do not even request additional collateral. As for medium- and long-term coverage, a bank guarantee or audited financial statements are usually required,” the agency representative noted.

Richter-Rahman clarified that long-term financing is available to Azerbaijani counterparties purchasing goods and services from German suppliers.

The standard credit repayment period is up to 15 years, while financing for environmental and green projects can be extended to as long as 22 years.

The agency also applies more flexible German content requirements to environmental projects.

“For standard transactions, we typically require that at least 51% of the value account for German content. In the case of green deals, we demonstrate greater flexibility: the minimum threshold drops to 30%,” she emphasised.

By Bakhtiyar Abbasov