UK Export Finance ready to invest up to £5B in PPP projects in Azerbaijan

UK Export Finance intends to adapt and focus its financing instruments on public-private partnerships (PPPs) in cooperation with Azerbaijan, Chris Allum, senior business development specialist at UK Export Finance, said during the first Azerbaijan International Investment Forum (AIIF 2025), Report informs.

Allum noted that the company provides guarantees for commercial loans issued by banks, provided that the project includes a certain amount of British content and exports.

"By British content or exports, we mean not only industrial goods but also services, such as legal support, consulting, and advisory services. This also includes intangible assets such as branding, licensing, etc."

He noted that the company recently completed its first deal in the country with Silkway West Airlines – for a flight simulator.

"More specifically, regarding Azerbaijan, we have up to £5 billion in available capacity. We hope our first deal will help us create momentum in the market. Within the PPP framework, UK Export Finance can play a dual role: we can mitigate risks for commercial banks and help attract private capital to projects. In terms of key PPP opportunities, we believe they fall into three areas. The first is transport and logistics infrastructure. In PPPs, we seek projects with a robust financial model capable of generating revenue over the long term. These could include toll roads, railway projects, and airports. In the railway sector, we have already completed several projects in Turkey, including three high-speed rail deals," said Allum.

According to the senior specialist, the second area is green energy and decarbonization.

"We have extensive experience in offshore wind projects, including floating wind turbines. One of UK Export Finance's core mandates is 'clean growth,' so we expect to participate in solar and wind projects that are beginning to develop in Azerbaijan. Finally, the third area is healthcare and education. The UK has successful PPP models in the construction and operation of hospitals, diagnostic centers, and other medical facilities. These models can be adapted to the Azerbaijani market," he said.

Overall, UK Export Finance offers quite attractive terms, he noted.

"We can guarantee up to 85% of the commercial loan amount. Unlike some other agencies, if a project encounters problems, we pay out 100% of this guaranteed amount. We can also provide financing in local currencies-in over 60 currencies-and offer flexible repayment terms. For green projects, the financing term can be up to 22 years. In summary, UK Export Finance is committed to adapting and tailoring its financing instruments to the PPP sector, working with partner countries like Azerbaijan," said Allum.