BSTDB, Azerbaijan Working On Exploring Cooperation On Energy Efficiency - Serhat Köksal (Exclusive Interview)

(MENAFN- Trend News Agency) BAKU, Azerbaijan, September 15. The Black Sea Trade and Development Bank (BSTDB) andAzerbaijan are working on exploring cooperation on energy efficiency, BSTDB President Dr. Serhat Köksal said in an exclusive interview with Trend , as he visited Baku.

"Green energy is a clear priority. In addition to our financial sector operations, we have renewable energy projects in the pipeline, and we are working on exploring cooperation on grid modernization and energy efficiency. This will complement Azerbaijan's own ambitious renewable agenda," he said.

Talking about his visit to Baku, Köksal noted that it focuses on deepening the partnership with Azerbaijan in priority areas such as connectivity, green energy, and support to SMEs through the local banking sector.

"We want to strengthen our ongoing cooperation and prepare the ground for new projects that can diversify and grow the economy. We already have active facilities with Rabitabank and TuranBank, and we are preparing new trade, finance, and SME credit lines with Azerbaijani banks. Having said that, it's my pleasure to inform you that during my current visit, we signed two new loan agreements with AzerTurk Bank in the amount of 8.5 million manats, and with Bank Respublika in the amount of 25 million manats. For the purpose of providing financing to Azerbaijani SMEs, these facilities are a proven way to reach local companies quickly, support employment, and diversification," BSTDB President explained.

He recalled that the Bank is currently working with Rabitabank and TuranBank, recently expanded the number of partner banks with the addition of AzerTurk Bank and Bank Respublika.

"We remain open to expanding this list. Our approach is straightforward. Any bank that meets our financial soundness, compliance, and governance standards can become a partner. Discussions are ongoing with additional institutions," Köksal added.

He pointed out that connectivity is a strategic area for the BSTDB: "Azerbaijan's central position in the Middle Corridor makes it a natural partner for us to finance transport, logistics, and digital infrastructure that strengthens regional integration."

Köksal noted that beyond energy and connectivity, the Bank is ready to support agriculture, food processing, and ICT. "These are vital sectors for diversification, and we are actively looking at opportunities where our financing can add value."

The BSTDB President also touched upon the prospects for issuing manat-denominated bonds in the future.

"BSDB was the first multilateral development bank to issue a low-concurrency bond in Azerbaijan. In August 2019, we successfully placed a two-year bond in the amount of 10 million manats on the Baku Stock Exchange. This landmark transaction, the first ever Azerbaijani manat bond issued by an IFI in Azerbaijan, was an important milestone for us and was made possible through the continued support of the Ministry of Finance, the Central Bank of Azerbaijan, and the Baku Stock Exchange. Although this successful issue was not followed by subsequent placements for various reasons, we continue to view issuing manat-denominated bonds as a natural direction for our activities so that we can enhance our support to Azerbaijani banks with more manat lending at more accessible interest rates. We are monitoring market conditions and assessing the right timing to re-enter the local capital market," he said.

In conclusion, Köksal pointed out that Azerbaijan is one of the BSTDB's founding partners, and it is very happy to collaborate with Azerbaijani institutions.

"At the end of the day, what we are doing together will serve all Azerbaijan citizens, and I hope we will be more beneficial than we used to be before," he said.

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