IFC signs its first loan agreement in energy efficiency field in Azerbaijan

Azerbaijan, Baku, July 29 /Trend I.Khalilova/ The International Finance Corporation (IFC) has signed an agreement with Azerbaijani Bank Respublika on a $15 million loan to finance energy efficiency projects. IFC will help the bank to create new projects in the sphere of financing energy efficiency, the report of the Baku office of the corporation said on Monday. According to the report, the trainings on raising the awareness of bank's employees on new possibilities in the market and evaluating the projects on energy efficiency will aslo be carried out. A $15 million loan is the first project of the corporation in this field in Azerbaijan. This project is a part of IFC's financing of sustainable energy in Europe and Central Asia, supported by the Ministry of Finance of Austria. Some $14 million will be allocated out of the $15 million credit line of the financial corporation, $1 million will be allocated within the framework of Canada Climate Change Program. "Bank Respublika has the positive experience of working with the IFC since 2007," the chairman of bank's executive board Khadija Hasanova said at signing of the agreement. "We are particularly interested in cooperation with the corporation in this new sphere, as this will provide the possibility to present new bank products to the market, which in its turn will allow increasing clients' awareness about energy efficiency. "Promoting energy efficiency is a part of IFC's strategy for impact on climate change" permanent representative of the International Financial Corporation in Azerbaijan Aliya Azimova said. "Cooperating with Bank Respublika in this sphere, we want to demonstrate that the financing of sustainable energy is a profitable business for both financial institutions and for borrowers. This creates opportunities for the introduction of modern technologies, reducing energy costs, improving efficiency and competitiveness." Bank Respublika has been operating since 1992 and is one of the leading banks of Azerbaijan. Among its shareholders are two large German financial institutions - DEG, a member of KfW banking group, and SIDT, a member of Sparkassen-Finanzgruppe, with a share in the bank at a rate of 25 percent + 1 share. Bank Respublika has a B2 rating with "stable" forecast by the international rating agency Moody's Investors Service. Do you have any feedback? Contact our journalist at agency@trend.az