UK Export Finance to allocate billions of euros to support projects in Azerbaijan

By cooperating with Azerbaijan, the UK Export Finance credit agency intends to adapt and direct its financing tools toward public-private partnership (PPP) projects, said the agency's Senior Business Development Specialist, Chris Allum.

He made the remarks during the first Azerbaijan International Investment Forum (AIIF 2025) on September 23, Caliber.Az informs, citing local media.

Allum noted that the company provides guarantees for commercial loans issued by banks, provided that a certain volume of British content and exports is used in the project.

“By British content or exports, we mean not only industrial goods but also services. For example, legal support, consulting, and advisory services. Intangible assets, such as branding, licensing, etc., are also included,” he said.

He came up with such a statement that the company recently completed its first deal in the country with Silkway West Airlines for a flight simulator.

“More specifically, regarding Azerbaijan: we have up to £5 billion in available capacity. We hope our first deal will help create momentum in the market. Within PPPs, UK Export Finance can play a dual role: we can reduce risks for commercial banks and help attract private capital to projects.

In terms of key opportunities for PPPs, we see them in three main areas. The first is transport and logistics infrastructure. In PPPs, we look for projects with a strong financial model capable of generating long-term revenues. These could include toll roads, railway projects, and airports. In the railway sector, we have already implemented several projects in Türkiye, including three high-speed rail deals,” Allum said.

The senior specialist highlighted that the second area is green energy and decarbonization.

“We have extensive experience in offshore wind projects, including floating wind farms. One of UK Export Finance’s main mandates is ‘clean growth,’ so we expect to participate in solar and wind projects that are starting to develop in Azerbaijan.”

“Finally, the third area is healthcare and education. The UK has successful PPP models in the construction and operation of hospitals, diagnostic centres, and other medical facilities. These models can be adapted to the Azerbaijani market,” he added.

Overall, UK Export Finance offers highly attractive conditions. “We can guarantee up to 85% of the commercial loan amount,” Allum mentioned.

“Unlike some other agencies, if a project encounters issues, we pay 100% of the guaranteed amount. We can also provide financing in local currency for over 60 currencies and offer flexible repayment terms. For ‘green projects,’ financing terms can reach up to 22 years. In summary, UK Export Finance seeks to adapt and direct its financing tools toward PPPs while cooperating with partner countries such as Azerbaijan,” the specialist stated.

By Khagan Isayev