AFSF - Demirbank MSME credit line (V)



Project number:


Business sector:

Financial institutions

Notice type:


Environmental category:


Approval date:

16 Jun 2009



PSD disclosed:

14 May 2009

Project Description

The EBRD is considering to provide a credit line of USD 13 million to Azerdemiryolbank to support the Azeri economy via credits to the country’s micro and small and medium-sized business sectors. Of the total, $3 million will be provided for SME lending and $10 million for lending to the micro sector.

Transition Impact

The proposed credit line is supporting 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 the private companies and banking sector in Azerbaijan by increasing medium-term financing to the productive sector of the economy through domestic banks would facilitate the strengthening of domestic production. Furthermore, the loan will increase availability of funds to Azeri small and medium-sized companies to facilitate their expansion.

The Client

Azerdemiryolbank, an open joint-stock company, is one of the leading private banking institutions in the Republic of Azerbaijan, majority owned by private individuals.

EBRD Finance

The credit line will be provided under the Azerbaijan Financial Sector Framework.

Project Cost

USD 13 million.

Environmental Impact

Screened FI. Representatives of Azeridemiryolbank attended the EBRD’s Environmental and Social Risk Management Workshop in 2003 and 2006. As such, it is familiar with the importance of environmental and social risk management.

PR 2: Labour and Working Conditions. Azerdemiryolbank should ensure that its human resource policies are compliant with EBRD's Performance Requirement 2 ("PR2") on Labour and Working Conditions. Azerdemiryolbank should confirm to the Bank that it complies with PR 2 or, if not, provide the Bank with a plan of action to achieve compliance in a reasonable time. Such compliance includes the implementation of a grievance mechanism for employees.

PR9: Financial Intermediaries. Azeridemiryolbank applies its environmental and social risk management procedures only to transactions financed under EBRD and other international credit lines and to "large loans" (> $100,000). In those cases, the branch credit officer is responsible for screening and identifying risks. When necessary, a credit officer from headquarters will accompany the local branch credit officer on the site visit to those transactions considered to pose potentially unreasonable environmental risks. Azerdemiryolbank will need to review its existing procedures in the context of the new Performance Requirements and ensure that acceptable environmental procedures are applied across the entire commercial lending portfolio.

Technical Cooperation

Azerdemiryolbank has been participating amongst 7 other banks in technical assistance programmes provided by EBRD under Azerbaijan Financial Sector Framework to improve the bank’s SME and micro lending capacity as well as amongst 4 other banks under Medium Co-financing facility. The technical assistance programmes are being funded by ETC Multi Donor Initiative Fund and the EBRD Shareholders Special Fund.

Company Contact

Mr. Shahin Y. Mirzoyev, Deputy Chairman of the Management Board
Tel: +994 12 444 7283


Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168

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

Share this page: