JBIC Signs HOA with State Oil Company of Azerbaijan Republic (SOCAR)
Promoting Business Expansion of Japanese Companies and SOCAR’s Initiatives for Realizing Decarbonized Society

• Region: Asia
• Environment

1. The Japan Bank for International Cooperation (JBIC; Governor: HAYASHI Nobumitsu) signed on November 15 a Heads of Agreement (HOA) with State Oil Company of Azerbaijan Republic (SOCAR) to proceed with further discussions for financing under JBIC’s GREEN operations^*1, taking the opportunity of the 29th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP29) being held in the Republic of Azerbaijan.
     
2. One of the fundamental elements of SOCAR's corporate strategy until 2035 is to contribute toward the realization of a sustainable society through low-carbonization efforts for its business, including renewable energy development. The HOA is intended to aim at building a consensus in which JBIC will provide a credit line to SOCAR under GREEN operations to support projects, such as those related to decarbonization, implemented by SOCAR. It follows a Memorandum of Understanding^*2 signed in May 2023.
     
3. The credit line sought to be extended under the HOA aims to support SOCAR’s initiatives for decarbonization and create opportunities for collaboration between Japanese companies and SOCAR, and it is expected to contribute toward realizing the decarbonized society that Japan and Azerbaijan are aiming for.
     
4. As Japan's policy-based financial institution, JBIC will continue to provide financial support for sustainable development efforts, including those for global environmental preservation, through strengthened cooperation with important partners in the decarbonization sector.
     

Note

1. *1 
   See announcement on July 2, 2018.
2. *2 
   See press release on May 17, 2023.