Project description
and objectives:
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The proposed project consists of a USD 7.5 million syndicated loan to an
Azerbaijani private bank, Unibank.
The project will provide Unibank with access to international markets to raise
medium term financing for on-lending to local private enterprises.
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Transition impact:
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The project will play a significant role in mobilisation of new sources of
funds by bringing foreign capital and new international financiers to the
Azerbaijani financial sector. This will be the second syndicated loan arranged
by EBRD to an Azerbaijani bank, as private banks in Azerbaijan have very
limited access to such types of funding. At present, IFIs are the only
potential providers of medium and long term financing and the local capital
market remains non-existent.
It is also expected that the project will have an impact on strengthening
private sector companies' (primarily SMEs) development in Azerbaijan by
promoting financial intermediation.
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The client:
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Unibank Commercial Bank, an open joint-stock company, is one of the leading
private banking institutions in Azerbaijan, that was incorporated in 2002 as a
result of a merger between M-Bank and Promtechbank. EBRD is a 15% shareholder
in Unibank.
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EBRD finance:
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The project is a syndicated loan structured in two portions. EBRD will finance
an A-portion (up to 3 years maturity) of the loan for up to USD 2.5 million,
while a B-portion (1 year maturity extendable for another year on the consent
of B-lenders) of the loan of up to USD 5.0 million is expected to be
financed by the participating banks.
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Total project cost:
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USD 7.5 million.
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Environmental impact:
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Unibank will be required to carry out its operations in accordance with EBRD's
Environmental Procedures for Local Banks. In implementing these procedures,
the bank will require its borrowers to comply, at a minimum, with national
and/or local health, safety, environmental and public consultantion
requirements.
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Technical
cooperation:
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Not associated with this operation, but Unibank has been benefiting from two
projects on the technical assistance:
(i) assistance of consultants helping Unibank to establish proper credit
approval procedures and processes, and
(ii) assistance of consultants focusing on the issues of institutional
building.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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Company contact:
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Mr. Faig Huseynov, Chairman of the Management Board
Tel: +994 12 598 22 44/45
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EBRD contact:
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Ainura Guppy, Operation Leader: guppya@ebrd.com
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Business opportunities:
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For business opportunities or procurement, contact the client company.
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General enquiries:
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EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com
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