IFC Invests $20M in Bank Respublika to Support MSMEs and Climate Projects in Azerbaijan.

The International Finance Corporation (IFC) granted a $20 million loan in local currency to Bank Respublika, a leading financial institution in Azerbaijan.

This initiative expands financial access for micro, small, and medium enterprises (MSMEs) and low-income households.

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Supporting Climate Action and Economic Resilience in Azerbaijan

Azerbaijan aims to reduce greenhouse gas emissions by 40% by 2050, to achieve this goal by 2035.

The World Bank’s Country Climate and Development Report estimates that achieving decarbonisation and enhancing climate resilience will require investments totalling approximately $44 billion by 2060, equating to about $1.35 billion annually.

The IFC loan to Bank Respublika seeks to address this funding gap, with half of the amount designated specifically for climate-focused initiatives led by MSMEs and low-income families

The IFC aims to demonstrate how financing green projects is vital for promoting sustainable development and achieving climate goals.

Alignment with the World Bank Group’s Climate Strategy for Azerbaijan

The investment aligns with the World Bank Group's strategy for Azerbaijan, aiming to improve climate finance access and sustainable development.

Azerbaijan's Central Bank launched its first Green Taxonomy with World Bank support to promote sustainability goals.

This new framework provides guidelines for sustainable investments and aids financial institutions in aligning their operations with national environmental goals.

Azerbaijan, a member of the IFC since 1995, has received nearly $900 million across financial services and infrastructure sectors.

The IFC collaborated with the country to enhance the business environment, strengthen financial governance, and assist small and medium enterprises.