Unileasing - Equity

Location:

Azerbaijan

Project number:

37018

Business sector:

Leasing Finance

Notice type:

Private

Environmental category:

FI

Approval date:

12 Dec 2006

Status:

Completed

PSD disclosed:

20 Oct 2006

Project Description

The proposed project consists of equity investment and debt financing to Unileasing, a subsidiary of Unibank, Azerbaijan. The company provides leasing finance to mainly SME clients across manufacturing, construction, medical, food processing and banking sectors. The EBRD’s investment will allow Unileasing to increase its market share both in Baku and the regions and to better diversify its leasing portfolio through attracting more small and medium enterprise clients.

Transition Impact

An investment in Unileasing will enable the Bank to undertake its first leasing project in the Azerbaijan. By providing a source of additional capital, institutional strengthening and overall management guidance the EBRD’s investment will enable Unileasing to be a leading company in the growing leasing market and in particular to support the needs for leasing products of individuals and SMEs.

The Client

Unileasing was set up in 2004 by Unibank, a leading private commercial bank in Azerbaijan with an extensive corporate clientele and a large regional network. Within less than 2 years since start of its operations Unileasing built up a sizable lease portfolio and gained a 20 % market share of leasing market in Azerbaijan.

EBRD Finance

An equity investment of up to USD 0.7 million to acquire of 33% stake in the company.

A loan of USD 3 million to support the growth of Unileasing’s portfolio and assist the company’s regional expansion.

 

Project Cost

USD 3.7 million.

Environmental Impact

Unileasing shall comply with applicable Azerbaijan’ s national environmental, health, safety and labour regulations and standards. Unileasing will also be required to adopt and implement the EBRD’s Environmental Procedures for leasing companies, which include adherence to the Bank’s Environmental Exclusion and Referral Lists, compliance with the Core Labour Conventions of the International Labour Organisation related to the child and forced labour and discriminatory practices at work and submission of the Annual Environmental report to the Bank.

Technical Cooperation

ETC (Early Transition Country) funding of EUR 250,000 is allocated to provide consultancy services to Unileasing in order to develop and strengthen Unileasing’s key operations, organisational structure, maximise its institutional development and apply principles of good corporate governance. The ultimate objective is to enable Unileasing to succeed as a modern, competitive leasing company and serve as a model for other leasing companies in Azerbaijan and to maximise its value before a potential exit to a strategic investor.

Company Contact

Hikmet Garibov, Chairman of the Board

92, Nizami str,
Baku, AZ, 1010
Azerbaijan Republic

Tel: (994 12) 498 8168
Fax (99412) 498 9129

Email: Hikmet.Garibov@unileasing.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

Project Complaint Mechanism (PCM)

The Project Complaint Mechanism (PCM) is the EBRD's accountability mechanism. It provides an opportunity for an independent review of complaints from individuals and organisations concerning EBRD-financed projects which are alleged to have caused, or are likely to cause, environmental and/or social harm.

Please visit the Project Complaint Mechanism page to find information about how to submit a complaint. The PCM Officer (pcm@ebrd.com) is available to answer any questions you may have regarding the submission of a complaint and criteria for registration and eligibility, in accordance with the PCM Rules of Procedure.