BAKU, Azerbaijan, February 17. The European Bank for Reconstruction and Development (EBRD) plans to provide a senior secured loan of $60 million to the Azerbaijan Caspian Shipping Company (ASCO), Trend reports, referring to the bank.
The loan is allocated for the acquisition of vessels as part of the international expansion strategy.
According to the EBRD, this project will help the company to expand its merchant fleet operations in international waters beyond the Caspian Sea, enhancing regional connectivity and trade relations.
“The project will promote the "Competitive" transition quality through acquisition of additional vessels to increase the company's shipment weight load and improve its flexibility of route directions. The project will also support the "Integrated" objective by expanding the company's non-Caspian fleet revenues and facilitating the transportation on the Middle Corridor," the bank said.
The EBRD outlined that ASCO is also leveraging the bank's expertise in energy and resource efficiency to achieve higher environmental standards and address the net-zero transition risks.
The bank reported that the long-term loan approval by the EBRD Directors is scheduled for April 26, 2023.
The loan portfolio of the EBRD projects in Azerbaijan was estimated at 843 million euros as of December 31, 2022.
EBRD Country Head for Azerbaijan Kamola Makhmudova earlier said that the anticipated portfolio of investment projects for the next three years is $750 million. The EBRD plans to allocate nearly $300 million in energy, transport, the private sector, SMEs, and the banking sector, in 2023.