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EBRD signs first leasing project in Azerbaijan
Financial package will strengthen Unileasing
With an agreement to acquire a 33-1/3 per cent-equity stake in and to provide
a $3 million loan to Unileasing, the EBRD is signing its first transactions in
Azerbaijan’s leasing sector. The project will strengthen a leasing company
with strong potential in a rapidly growing market.
The EBRD financing will be complemented by €250,000 in technical assistance
from the Early Transition Countries Fund to enable the implementation of an
enhanced management information system, the improvement of policies and
procedures and the adoption of best practices of corporate planning and
management.
Unileasing was set up in 2004 as a fully-owned subsidiary of Unibank, one of
the leading private commercial banks in Azerbaijan in which the EBRD is also a
share-holder. Unileasing has built a sizeable portfolio of assets and today
holds a market share of approximately 17 per cent.
The leasing market in Azerbaijan is developing rapidly from a modest base. The
EBRD sees substantial scope for development of the sector and has made its
support one of the priorities in its latest strategy for Azerbaijan.
Jonathan Woollett, EBRD Director Non-Banking Financial Institutions, said that
by providing additional capital, institutional strengthening and overall
management guidance the EBRD’s investment will enable Unileasing to confirm
its position as a leading company in the growing Azeri leasing market.
Aygen Yayikoglu, Head of EBRD Resident Office in Azerbaijan, added that the
Bank’s investment will in particular encourage support for leasing products
for private entrepreneurs and small and medium-sized enterprises, in line with
our overall strategy to help develop the non-oil sectors of Azerbaijan.
Khalid Asgarov, Chairman of the Executive Board of Unileasing, said the EBRD’s
acquisition of 33-1/3 per cent of our shares is a solid expression of trust in
our company. We are sure this will help us with our institutional development
and will provide us with access to additional financial resources. Like our
main shareholder Unibank, we regard the relationship with the EBRD as a
milestone for our company’s progress.
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