Azerbaijan's AccessBank allocates $8.2 mln to confectionery manufacturer under program with EBRD

BAKU. Dec 20 (Interfax) - Azerbaijan's AccessBank has allocated a loan totaling 14 million manat, $8.2 million at the current exchange rate, to the AZZA confectionery and dairy producer to complete the construction of a new modern production facility.

"AccessBank and AZZA have signed the first long-term loan agreement under the Risk Sharing Facility (RSF) of the European Bank for Reconstruction and Development. The mechanism allows AccessBank and the EBRD jointly to finance small- and medium-sized enterprises in Azerbaijan on a 50/50 basis. Under the agreement, AccessBank will provide AZZA with a loan of 14 million manat to complete the construction of a new modern production facility, as well as a grant for the development of the green economy," AccessBank said.

AZZA has been operating in Azerbaijan for 17 years and is engaged in the production of various types of sweets and dairy products. Additionally, the company is engaged in the retail sale of imported sweets and alcohol. The company has three production workshops and 110 stores.

As reported, the EBRD in September 2024 announced the resumption of the RSF program in Azerbaijan in cooperation with AccessBank. Each party will contribute 15 million euros for this purpose. The RSF is a strategic initiative within the EBRD's Small Business Support Programme aimed at developing the private sector. The RSF allows the EBRD to share the risks of partner banks' loans to businesses in need of working capital.

AccessBank has been operating in Azerbaijan since 2002. All shareholders are foreign banks and financial institutions, the largest being the Asian Development Bank with over 20%, the European Investment Bank with over 17%, and the International Finance Corporation with around 16%.

The official exchange rate as on December 19, 2024, was 1.7 manat/$1.