Project description
and objectives:
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The proposed project consists of equity investment and debt financing to
Unileasing, a subsidiary of Unibank, Azerbaijan. The company provides leasing
finance to mainly SME clients across manufacturing, construction, medical,
food processing and banking sectors. The EBRD’s investment will allow
Unileasing to increase its market share both in Baku and the regions and to
better diversify its leasing portfolio through attracting more small and
medium enterprise clients.
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Transition impact:
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An investment in Unileasing will enable the Bank to undertake its first
leasing project in the Azerbaijan. By providing a source of additional
capital, institutional strengthening and overall management guidance the
EBRD’s investment will enable Unileasing to be a leading company in the
growing leasing market and in particular to support the needs for leasing
products of individuals and SMEs.
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The client:
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Unileasing was set up in 2004 by Unibank, a leading private commercial bank
in Azerbaijan with an extensive corporate clientele and a large regional
network. Within less than 2 years since start of its operations Unileasing
built up a sizable lease portfolio and gained a 20 % market share of leasing
market in Azerbaijan.
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EBRD finance:
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An equity investment of up to USD 0.7 million to acquire of 33% stake in the
company.
A loan of USD 3 million to support the growth of Unileasing’s portfolio and
assist the company’s regional expansion.
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Total project cost:
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USD 3.7 million.
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Environmental impact:
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Unileasing shall comply with applicable Azerbaijan’ s national environmental,
health, safety and labour regulations and standards. Unileasing will also be
required to adopt and implement the EBRD’s Environmental Procedures for
leasing companies, which include adherence to the Bank’s Environmental
Exclusion and Referral Lists, compliance with the Core Labour Conventions of
the International Labour Organisation related to the child and forced labour
and discriminatory practices at work and submission of the Annual
Environmental report to the Bank.
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Technical
cooperation:
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ETC (Early Transition Country) funding of EUR 250,000 is allocated to provide
consultancy services to Unileasing in order to develop and strengthen
Unileasing’s key operations, organisational structure, maximise its
institutional development and apply principles of good corporate governance.
The ultimate objective is to enable Unileasing to succeed as a modern,
competitive leasing company and serve as a model for other leasing companies
in Azerbaijan and to maximise its value before a potential exit to a strategic
investor.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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Company contact:
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Hikmet Garibov, Chairman of the Board
92, Nizami str,
Baku, AZ, 1010
Azerbaijan Republic
Tel: (994 12) 498 8168
Fax (99412) 498 9129
Email: Hikmet.Garibov@unileasing.az
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EBRD contact:
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Vladimir Klechtchev, Operation Leader: klechtcv@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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