The Asian Development Bank (ADB) and Bank Respublika have signed a $40 million loan agreement to expand financing for micro, small, and medium-sized enterprises (MSMEs) and agricultural businesses across Azerbaijan, with a particular focus on regions outside Baku.

Under the agreement, at least 20% of the loan will be allocated to women-owned MSMEs, while at least 50% will support borrowers involved in agricultural production, processing, and trade, according to ADB.

The funding is expected to help farmers adopt modern drip irrigation systems and grow crops and fruits suited to different weather conditions. The initiative also aims to boost business growth, create jobs, increase incomes, and strengthen resilience to natural hazards.

The project is part of broader efforts to diversify Azerbaijan’s economy, improve food security, and expand access to finance for businesses beyond the capital.

“This financing aligns well with ADB’s country partnership strategy for Azerbaijan, 2025-2029, by promoting private sector-led growth, strengthening food security, improving resilience, and expanding access to finance for women-led businesses in areas outside the capital,” said Sunniya Durrani-Jamal, ADB country director for Azerbaijan.

She noted that the initiative builds on the bank’s existing cooperation with Bank Respublika and reaffirmed ADB’s commitment to strengthening the partnership.

Established in 1992, Bank Respublika is Azerbaijan’s fifth-largest bank by assets, with a 4.4% market share. It serves retail customers, MSMEs, and corporate clients through a network of 40 branches, including 24 outside Baku.