Project number:


Business sector:

Financial institutions

Notice type:


Environmental category:


Approval date:

29 Jul 2003



PSD disclosed:

03 Jun 2003

Project Description

The proposed project is for the Bank to acquire up to a 20% stake in Unibank (UB) via subscription to newly issued shares.  UB was formed in October 2002 when Mbank and Promtekhbank merged and consolidated their businesses.  
The investment has the following objectives:
  • Support the consolidation of this newly merged bank and its lending capacity by strengthening its capital base, supporting the development of its infrastructure and strengthening corporate governance post merger;
  • Provide both management guidance and institutional building through Supervisory Board participation and technical assistance;
  • The consolidation should demonstrate the benefits of such a merger and create a more efficient intermediary in the financial sector.

Transition Impact

The project has a high transition impact because of its restructuring, demonstrating consolidation and the creation of a financial intermediary with critical mass in the Azerbaijani banking sector. The project consolidates the first private financial sector merger in Azerbaijan and is the EBRD’s first equity participation in an existing local bank in the country.
The Bank's investment and the underlying merger that it supports will have a positive impact on both UB's own operations and the financial sector it participates in, recognising that it will:
  • Enable UB to increase intermediation and its capacity to finance the private enterprise sector, particularly SMEs;
  • Demonstrate the benefits of merger as a method of strengthening the position in the market through both increased market share as well as efficiency improvement; expected to encourage banking sector consolidation among the many smaller private banks that presently operate in Azerbaijan.

The Client

Unibank (UB) was established on 1 October 2002 when the operations of Mbank (MB) and Promtekhbank (PTB) merged. As a result of this merger, the first of its kind in the Azerbaijan financial sector, UB has become one of the top 5 private banks in Azerbaijan in terms of total equity.

EBRD Finance

Equity investment for up to 20% of the shares in Unibank.

Project Cost

To be confirmed following completion of due diligence.

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 consultation requirements.

Technical Cooperation

EU Tacis funded TC for strengthening of UB's SME credit process is already provided (on a shared based with 2 other participating banks) via its participation in the Azerbaijan Multi-bank Framework Financing Facility. Further TC funds will be sought for institutional development focusing on improvement in specific operational areas.

Company Contact

Mr Faig Huseynov, Chairman of the Board
Unibank Commercial Bank
172 Tolstoy str.
Tel : +99412 982 244
E-mail: Faig.Huseynov@ptbank.com

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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