Bank Respublika A/B loan

Location:

Azerbaijan

Project number:

37898

Business sector:

Depository Credit (banks)

Notice type:

Private

Environmental category:

FI

Approval date:

10 Jul 2007

Status:

Completed

PSD disclosed:

07 Jun 2007

Project Description

The proposed Project consists of a debut syndicated loan of USD 14 million to Bank Respublika for on-lending to private sector businesses in Azerbaijan. Tranche B of this A/B structure loan will be syndicated and will have a maturity of 18 months.

The facility will help Bank Respublika in accessing international capital markets, support the diversification of its funding and the expansion of its SME and privately owned client base.

Transition Impact

The project will have a significant transition impact in the following areas:

  • facilitate Bank Respublika’s access to the international commercial debt market and help to diversify the bank’s funding base

  • support development of the private companies and banking sector in Azerbaijan by increasing medium-term financing to the productive sector of the economy through local banks.

The Client

JSC Bank Respublika is a privately owned commercial bank operating in Azerbaijan with total assets of USD 128 million and shareholders’ equity of USD 13.5 million as of 31 December 2006.

EBRD Finance

EBRD will retain up to USD 6 million on its own account. An amount of USD 8 million under the B-Loan will offered to the syndication market.

Project Cost

USD 14 million.

Environmental Impact

Bank Respublika will be required to comply with the EBRD’s Environmental Procedures for Intermediated Financing through Local Banks, including ensuring compliance with the applicable national environmental, health, safety and labour standards and regulations, adherence to the EBRD’s Environmental Exclusion and Referral List and submission of annual environmental reports to the Bank.

Technical Cooperation

Bank Respublika has been participating amongst 7 other banks in technical assistance programmes provided by EBRD under Azerbaijan Multi-Bank Framework to improve the bank’s SME and micro lending capacity as well as amongst 2 other banks under Medium Co-financing facility. The technical assistance programmes are being funded by EU Tacis and ETC Multi Donor Initiative Fund.

Company Contact

Mr Erhan Javad
Director of Financial Institutions and Trade Finance Department

Tel: +994 12 598 0800
Fax: +994 12 598 0880

E-mail: ErhanJ@BankRespublika.az

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

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Text of the PIP

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