Germany is proposing financing for green projects in Azerbaijan for up to 22 years, Underwriter for Africa, Eastern Europe, Southern Caucasus and Central Asia, Annika Richter-Rahman, said during the online webinar “Azerbaijan: infrastructure development, electromobility and solutions for energy storage from renewable sources”, Trend's correspondent reports. According to her, the German side provides protection against default on export receivables, including in individual transactions, as well as various types of insurance coverage for export credits, supplier-buyer loans, and project financing. "Project financing is quite relevant in the renewable energy sector," she explained.
Richter-Rahman noted that when purchasing from a German exporter, the Azerbaijani side can receive long-term financing. "We offer financing terms of up to 15 years, and for green projects, which most renewable energy projects are, repayment terms can reach 22 years. One of the main advantages is the AAA rating, which is supported by the German government and reduces the cost of financing.
Germany also provides expert support in project structuring, including in the early stages. If you are in the early stages of project structuring and are considering various financing options, we are ready to discuss and explore how the project can be structured so that you can take advantage of our offer," she pointed out. Speaking about the terms of insurance coverage for Azerbaijan, Richter-Rahman clarified that the country's policy in this area is quite open.
"We don't have a limit, so we're truly unlimited in the amount we can insure. For short-term coverage, additional guarantees are not required. For medium- and long-term coverage, a bank guarantee or financial statements prepared in accordance with International Financial Reporting Standards (IFRS) are usually required.
We typically require financial statements prepared in accordance with IFRS. If they are close to IFRS, it's also worth contacting us, and we can see if an exception is possible. This is considered on a case-by-case basis," she said.
According to Richter-Rahman, to receive support for regular projects, a German exporter must be involved in the transaction, and significant German content must be ensured. "For all regular transactions, we generally require at least 51% of the transaction to be of German origin. For green deals, the minimum requirement is 30%," she announced.
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