Unibank A/B loan - II

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Project ID 36783

Status Complete

Location

Azerbaijan

Business Sector

Financial Institutions

Notice Type

Private

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Project ID 36783

Status Complete

Location

Azerbaijan

Business Sector

Financial Institutions

Notice Type

Private

Environmental Category

Approval Date

25 Apr 2006

Disclosure date

24 Mar 2006

As per section 1.4.2 (iii) of the Directive on Access to Information: "For Projects approved by Bank management where the Board of Directors has delegated the approval authority, the PSD shall be disclosed at the start of the relevant no-objection notification period to a member country of the Bank in accordance with Article 13 (iii) of the Agreement Establishing the EBRD."

Project Description

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.

Transition Impact

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.

The Client

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.

EBRD Finance

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.

Project Cost

USD 7.5 million.

Environmental Impact

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.

Technical Cooperation

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.

Company Contact

Mr. Faig Huseynov, Chairman of the Management Board

Tel: +994 12 598 22 44/45

Transition impact

ETI Score:40

PSD last updated

01 Feb 2019

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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