Allianz Trade offers Azerbaijan long-term financing of green projects for up to 22 years

German export credit agency Allianz Trade has expressed readiness to finance projects in Azerbaijan, primarily in the field of renewable energy, without establishing any restrictions on the volume of support provided, Report informs, citing statements by Underwriter for Africa, Eastern Europe, South Caucasus, and Central Asia at Allianz Trade Annika Richter-Rahman during the webinar "Infrastructure Development, E-Mobility and Renewable Energy Storage Solutions in Azerbaijan."

As Richter-Rahman explained, the agency's insurance coverage protects German exporters from commercial and political risks associated with non-payment, while also enabling a significant reduction in the cost of financing raised.

"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 stated.

Richter-Rahman noted that long-term financing is available to Azerbaijani counterparties purchasing goods and services from German suppliers. At the same time, the standard credit repayment period is up to 15 years, and in the case of environmental and green initiatives, this term can be extended up to 22 years.

In addition, the agency provides more lenient German content requirements when executing 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 emphasized.