EBRD, Unibank to provide loan to Azerbaijan's oil-service company
By Aynur Jafarova
The European Bank for Reconstruction and Development (EBRD) and Azerbaijan's Unibank will provide a loan worth $10 million to Dalgidj LLC for the expansion of the company's activities.
"The loan will be used for the acquisition of a new remotely operated vehicle (ROV) and the construction of a new warehouse," EBRD said on August 1.
Neil McKain, the EBRD Head of Office in Azerbaijan, said this signing allows the bank to support the growth of a strong local company.
"It illustrates how Azerbaijani enterprises are benefiting from offshore explorations and we are impressed by their successful efforts to meet highest international standards," he noted.
Jalal Gasimov, CEO of Unibank noted companies such as Dalgidj are the ones that drive the real sector of Azerbaijan's economy and its modernization.
"Thus, it is always a priority for us to support this sort of innovative company, especially considering that the project will create many jobs for skilled specialists. Our decision to finance this project is also an indication of the high level of cooperation between the EBRD and Unibank. As of today, this will be the largest project the EBRD has ever co-financed with any local bank in Azerbaijan. I would like to invite other businesses to take advantage of this very beneficial funding facility."
The loan comes under the EBRD's Medium-Sized Co-financing Facility which was established with local banks to meet the financing needs of successful medium-sized private companies in early transition countries.
Strict technical and environmental requirements for offshore exploration are leading to an increased demand for underwater technical operations. Companies engaged in these activities are also facing strict requirements and strong competition. In these conditions professional staff and modern equipment are crucial for enterprises to succeed.
Dalgidj, an Azerbaijan's oil-service company, offers services such as diving inspections and underwater technical operations, which includes underwater welding and cutting at depths of up to 60 meters and ROV operations at depths of up to 1,000 meters in the Caspian Sea.
The company provides these services to large oil companies which are active in the Azerbaijani sector of the Caspian Sea.
The EBRD has been active in Azerbaijan since the country's independence. To date the Bank has invested in 146 projects with over $2.5 billion across various sectors of the Azerbaijani economy. One of the EBRD's priorities in the country is to support the growth of the non-oil private sector by investing in dynamic small and medium-sized enterprises.