Project number:


Business sector:

Financial institutions

Notice type:


Environmental category:


Approval date:

14 Dec 2004



PSD disclosed:

12 Nov 2004

Project Description

The proposed project consists of a US$ 5 million syndicated loan to an Azeri 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 first 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 foreign 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 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 20% 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 US$ 1.5 million, while a B-portion (up to 2 years maturity) of the loan of up to US$ 3.5 million is expected to be financed by the participating banks.

Project Cost

US$ 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

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
(ii) assistance of consultants focusing on the issues of institutional building.

Company Contact

Mr. Faig Huseynov, Chairman of the Management Board
Tel: +994 12 98 22 44/45

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

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