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AzerNEWS Staff

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The OPEC Fund for International Development (the OPEC Fund) has signed a US$20 million-equivalent local currency loan with Bank Respublika in Azerbaijan, marking an important expansion of its financing toolkit. The proceeds will be on-lent to local micro, small and medium-sized enterprises (MSMEs), helping strengthen entrepreneurship, create jobs and support sustainable economic growth, AzerNEWS reports.

OPEC Fund President Abdulhamid Alkhalifa said: “This local currency financing marks an important milestone in the continued evolution of the OPEC Fund’s financial offering. By expanding the range of solutions we provide, we can better respond to our partners’ needs and help channel investment where it is needed most. Local currency financing helps reduce exchange rate risk for borrowers, strengthens investment confidence and supports the development of domestic capital markets. We are pleased to launch this transaction together with Bank Respublika.”

Tariyel Ismayilov, Chairman of the Management Board of Bank Respublika, commented: “For us, this agreement is not just about financing. It is an important sign of trust from one of the world’s leading development finance institutions, the OPEC Fund. We are sincerely grateful to President Alkhalifa and his excellent team for their high professionalism and outstanding cooperation. We believe this agreement will become the first step toward a successful long-term partnership between Bank Respublika and the OPEC Fund.”

Bank Respublika was the fifth largest bank by assets in Azerbaijan in 2025 and focuses on MSMEs and retail clients. Operating through a growing branch network across the country, Bank Respublika offers a wide range of banking services and is well-positioned as a financial intermediary. Bank Respublika is a private commercial bank and was founded in 1992.

The transaction reflects the OPEC Fund’s continued efforts to broaden its range of financing solutions in response to evolving partner country needs. It builds on recent additions to the institution’s product offering, including syndicated loans, results-based lending and sustainability-linked financing. Local currency financing by multilateral development banks is an important instrument to reduce foreign exchange risk for borrowers, mobilize investment and support the development of domestic capital markets - key foundations for resilient and sustainable economic growth.

The loan represents the OPEC Fund’s inaugural local currency operation and reflects the institution’s ongoing commitment to developing financing solutions that are aligned with the needs of its partner countries.

The loan agreement between the OPEC Fund and Bank Respublika was signed on the sidelines of the fifth OPEC Fund Development Forum in Vienna in late June. The OPEC Fund’s partnership with Azerbaijan dates back to the early 2000s, when it financed its first projects in the country. Since then, the institution has approved more than US$250 million in financing across banking, energy and infrastructure, supporting sustainable development and private sector growth in Azerbaijan.