BSTDB and Azerbaijan Explore Cooperation on Energy Efficiency

Strategic Insights -

BSTDB President Dr. Serhat Koksal emphasized the importance of green energy in Azerbaijan, citing the bank's commitment to renewable energy projects and exploring cooperation on grid modernization and energy efficiency. During his visit to Baku, Koksal sought to deepen the partnership between BSTDB and Azerbaijan in priority areas such as connectivity, green energy, and support to small and medium-sized enterprises (SMEs) through the local banking sector.

Key Takeaways:

  • The BSTDB and Azerbaijan are working on exploring cooperation on energy efficiency, with a focus on grid modernization and renewable energy projects.
  • The bank has signed two new loan agreements with AzerTurk Bank and Bank Respublika, totaling 33.5 million manats (approximately $19.4 million USD), to provide financing to Azerbaijani SMEs.
  • The BSTDB is currently working with three Azerbaijani banks: Rabitabank, TuranBank, and AzerTurk Bank, with discussions underway to expand the list of partner banks.
  • The bank is also exploring opportunities in agriculture, food processing, and information and communication technology (ICT), with a focus on sectors critical for economic diversification.
  • The BSTDB is considering re-entering the local capital market to issue manat-denominated bonds, building on its successful landmark transaction in August 2019.

Statistics:

  • The BSTDB has signed two new loan agreements, totaling 33.5 million manats ($19.4 million USD), to support Azerbaijani SMEs.
  • The bank is currently working with three Azerbaijani banks, with discussions underway to expand the partner bank list.
  • The BSTDB successfully placed a two-year bond in the amount of 10 million manats on the Baku Stock Exchange in August 2019.

Sources:

  • Trend News Agency (15 Sep 2022)
  • BSTDB press release (August 2019)