Frequently asked questions

The Financial Model should include:

• Profit & Loss statement (P&L)

• Balance sheet

• Cash flow statement

• Detailed list of assumptions supported by letters of intent, offer letters, or market research

• Planned financing structure of the project

The Market Research should cover:

• General market information for the relevant production sector

• Sales and/or export opportunities in the domestic market

• Pricing and competitiveness

• Potential customers

• Global market overview (demand, production and sales markets)

The grace period is determined for each entrepreneur based on cash flow data and the nature of their activity. It may cover up to the first half of the loan utilization period.

In cases of natural disasters, epidemics, force majeure events, or other significant changes in circumstances, restructuring of debt obligations (granting of a deferral) may be carried out in accordance with the procedure determined by the Supervisory Board.

The authorized credit institution registers the application and provides the entrepreneur with a confirmation document. Within no later than 10 (ten) banking days, the credit institution analyzes the project and notifies the entrepreneur of its financing decision.

ABDF participates in projects as a minority shareholder. The minimum investment amount is AZN 500,000, and the maximum is 20% of assets under management. ABDF may invest up to 30% of the project's charter capital.

ABDF's participation period in a project ranges from 5 to 10 years, depending on the project's financial performance.

The following are required for a detailed project assessment:

• Business plan

• Financial model

• Market research

As ABDF promotes the development of the Azerbaijani economy, it primarily invests in projects implemented within the territory of Azerbaijan. At the same time, projects located outside the territory but directly contributing to Azerbaijan's economy may also be considered.

After documentation is finalized, the authorized credit institution sends an order to the Fund. The Fund allocates funds to the credit institution within 3 (three) business days. After receiving the funds, the credit institution transfers them to the entrepreneur's account within 5 (five) business days.

• Small loans: AZN 5,000 – 50,000

• Medium loans: AZN 50,001 – 1,000,000

• Large loans: AZN 1,000,001 – 10,000,000

• Small loans: up to 3 (three) years

• Medium loans: up to 5 (five) years

• Large loans: up to 10 (ten) years

• Loan amount: AZN 5,000 – 3,000,000

• Term: not exceeding 5 years

• Annual interest rate: Fund's share 2%, credit institution's share 7%, total not to exceed 9%

• Grace period: up to 12 months considering equipment installation time

• Granted only for the purchase of new equipment

• Down payment: minimum 20% of equipment sales value (10% for locally produced equipment)

The Fund's annual interest rate is 1%, and the authorized credit institution's rate shall not exceed 4%, making the total annual concessional loan interest rate up to 5%.

Entrepreneurs pay interest monthly in accordance with the contract terms. The principal debt is repaid in equal installments over the remaining period after the grace period expires.

Since authorized credit institutions place funds in their own name and at their own risk, they may require collateral from entrepreneurs to reduce risk. The form and scope of collateral is determined by the authorized credit institution.

Concessional loans are available for sectors specified in the "Regulations on Granting Concessional Loans" approved by the Fund's Supervisory Board and the defined priority directions.

Entrepreneurs should apply not directly to the Fund, but to the head offices or branches of authorized credit institutions to obtain concessional loans.