Unibank A/B loan - II

Location:

Azerbaijan

Project number:

36783

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Approval date:

25 Apr 2006

Status:

Completed

PSD disclosed:

24 Mar 2006

Project Description

The proposed project consists of a USD 7.5 million syndicated loan to an Azerbaijani 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 second 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 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 private sector companies' (primarily 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 15% 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 USD 2.5 million, while a B-portion (1 year maturity extendable for another year on the consent of B-lenders) of the loan of up to USD 5.0 million is expected to be financed by the participating banks.

Project Cost

USD 7.5 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

Not associated with this operation, but 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, and

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

Company Contact

Mr. Faig Huseynov, Chairman of the Management Board

Tel: +994 12 598 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

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out how to submit a Request for review through our confidential online form, by email, mail or telephone. IPAM is available to discuss your concerns and answer any questions you may have about the submission or handling of Requests, which follow the Project Accountability Policy and Guidance. Requestors’ identities may be kept confidential, upon request.

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