Azerbaijan: Cofinancing

Cofinancing operations enable ADB’s financing partners, governments or their agencies, multilateral financing institutions, and commercial organizations to participate in financing ADB projects. The additional funds are provided in the form of official loans and grants, and commercial financing such as B loans, risk transfer arrangements, parallel loans, and cofinancing for transactions under ADB’s Trade Finance Program.

By the end of 2013, cumulative direct value-added (DVA) official cofinancing for Azerbaijan amounted to $2.5 million for one investment project and $1.9 million for three technical assistance projects. Cumulative DVA commercial cofinancing for Azerbaijan amounted to $143.79 million for two investment projects.

Azerbaijan: Projects Cofinanced, 1 January 2009-31 December 2013

Cofinancing No. of Projects Amount ($ million)
Projects 2 143.79
 Commercial cofinancing 2 143.79
Technical Assistance Grants 1 1.00

Investment Projects Cofinanced for Azerbaijan, 1 January 2009-31 December 2013

Project ADB Amount* ($ million) Cofinancing Amount ($ million) Type of Cofinancing**
Garadagh Cement Expansion and Energy Efficiency Improvement Project 27.00 143.58 C
Trade Finance Program*** 15.56 0.21 C

* Loan, grant or blend / ** C = commercial cofinancing / *** The $1 billion limit for ADB's Regional Trade Finance Program (TFP) approved by the Board of Directors in 2009 is the maximum exposure the TFP can assume at any one point in time. This limit has never been breached. Because maturities under TFP transactions tend to be short - on average less than 180 days - TFP exposure can revolve (be reused) within a year. In addition, the TFP distributes risk exposures to various partners, which leverages its capital resources. This explains how the TFP's exposure from 2009-2013 was greater than its $1 billion limit without actually breaching the limit at any one point in time.