Demirbank syndicated A/B loan

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Project ID 45853

Status Repaying

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 45853

Status Repaying

Location

Azerbaijan

Business Sector

Financial Institutions

Notice Type

Private

Environmental Category

Approval Date

09 Jul 2014

Disclosure date

21 May 2014

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."

Translated version of this PSD: Azerbaijani

Project Description

A syndicated loan under A/B structure. The proposed syndicated loan proceeds will be used for on-lending to micro, small and medium-sized enterprises(MSMEs).

Transition Impact

The proposed credit line is in line with EBRD’s country strategy for Azerbaijan, and will further support the increase of financial intermediation in the market and promote competition. Supporting the development of private companies and the banking sector in Azerbaijan by increasing medium-term financing to the production sector through domestic banks will facilitate the strengthening of domestic production. Furthermore, the loan will increase the availability of funds to Azeri MSMEs to assist their expansion, and will demonstrate how attracting commercial investment to a country can support the financing of local MSMEs.

The Client

Open Joint Stock Company Demirbank, a private commercial bank in Azerbaijan, majority-owned by private individuals.

EBRD Finance

The EBRD will retain USD 13 million of the proposed syndicated loan of which USD 3 million will be funded through the Financial Intermediaries Special Fund. The balance of up to USD 37 million is to be syndicated on a best efforts basis.

Project Cost

USD 50 million.

Environmental Impact

Categorised FI. Demirbank is an existing client of the bank and has attended an environmental and social risk management training workshop organised by the Bank on 2010. Demirbank implements environmental and social procedures and is compliant with the Environmental and Social Exclusion List. Demirbank will need to ensure continuous compliance with the PRs2 and 9 and provide an ongoing E&S training to all new comers, especially in regional branches, to ensure consistency of the environmental and social due diligence an monitoring process throughout the entire portfolio.

Technical Cooperation

None.

Company Contact

Aytan Gulusoy, Director International Relations Department

Tel: +994 (12) 444 71 23

Transition impact

ETI Score:55

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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