- EBRD opens new US$50 million trade finance limit for IBA
- First EBRD agreement with Azerbaijan’s largest state-owned bank
- TFP line to strengthen trade and export/import operations in Azerbaijan
The European Bank for Reconstruction and Development (EBRD) has approved a trade finance limit of up to US$ 50 million (€46.7 million) for International Bank of Azerbaijan (IBA) under its Trade Facilitation Programme (TFP). This inaugural agreement with Azerbaijan’s largest lender was signed at the United Nations Climate Change Conference (COP29) in Baku.
The newly established facility, aimed at supporting export and import operations for the benefit of private clients, will enable IBA to further expand trade transactions with the international banking community, deepening Azerbaijan’s integration into global markets. The agreement is also testament to the EBRD’s increasing support for Azerbaijan’s financial sector.
EBRD President Odile Renaud-Basso said: “We are confident that this trade finance line will add significant value to Azerbaijan’s financial sector and its clients while supporting Azerbaijan’s foreign trade. Concurrently, the EBRD will advise IBA on identifying and structuring green transactions.”
Chairman of the Management Board of IBA Abbas Ibrahimov said: "As IBA, we will make the best efforts to utilise these financial resources to mainly support projects focused on the green economy, maintaining our responsibility and dedication for the safer and cleaner environment. Under EBRD’s limit, priority will be given to green trade projects aimed to reduce carbon emissions."
The EBRD’s TFP currently operates in 27 economies, with an extensive network of more than 125 issuing banks and over 800 confirming banks, strengthening correspondent banking relationships, developing links with new markets and promoting intraregional transactions. Through the TFP, the EBRD provides guarantees and short-term loans to local banks, enabling smoother trade flows and increasing access to new markets for local businesses.
IBA is Azerbaijan’s largest state-owned bank, offering a full range of banking services to large companies, small and medium-sized enterprises (SMEs) and retail clients through 70 full-service branches and 11 service outlets across the country.
The EBRD is a leading institutional investor in Azerbaijan, having invested over €3.7 billion through 191 projects in the country to date.