EBRD Funds Expansion of Azerbaijan’s Shipping Fleet for Enhanced Regional Trade Connectivity

EBRD Funds Expansion of Azerbaijan’s Shipping Fleet for Enhanced Regional Trade Connectivity

(IN BRIEF) The European Bank for Reconstruction and Development (EBRD) is granting a $42 million (€38.71 million) loan to Azerbaijan Caspian Shipping Company (ASCO), a state-owned shipping company in Azerbaijan. ASCO plans to use the funds to acquire two Handysize vessels, which will transport dry cargo internationally and strengthen regional maritime trade connections. This initiative supports Azerbaijan’s strategic position as a key link in the extended Middle Corridor route, connecting Central Asia and the South Caucasus with global markets. Additionally, the EBRD will assist ASCO in improving its climate corporate governance and disclosure practices to address decarbonization challenges in the shipping sector and facilitate ASCO’s adoption of sustainability-linked financial instruments.

(PRESS RELEASE) LONDON, 2-Feb-2024 — /EuropaWire/ — The European Bank for Reconstruction and Development (EBRD) is contributing to the diversification of transport connections between Asia and Europe by providing a US$ 42 million (€38.71 million) loan to Azerbaijan Caspian Shipping Company (ASCO), a state-owned shipping company in Azerbaijan.

ASCO will use the funds to expand its merchant fleet operations by purchasing two Handysize vessels to transport dry cargo in international waters, enhancing regional maritime connectivity and trade. The new vessels will support Azerbaijan’s drive to bolster the country’s position as a crucial link along the extended Middle Corridor route connecting Central Asia and South Caucasus with global markets.

EBRD will also support ASCO in improving its climate corporate governance and disclosure practices to better address decarbonisation challenges in the shipping sector and pave the way for ASCO’s first sustainability-linked financial instruments.

ASCO is one of the largest shipping companies in the region and plays an important role in maritime connectivity across this vital trade route.

The EBRD is an important institutional investor in the Caucasus and Central Asia. In Azerbaijan, the Bank has invested more than €3.6 billion in 189 projects to support the country’s economic diversification.

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SOURCE: EBRD