Agreement on giant finance package signed in Azerbaijan

Agreement on giant finance package signed in Azerbaijan

Azerbaijan, Baku, July 9 / Trend , N.Ismayilova/

The Azerbaijani Unibank and the European Bank for Reconstruction and Development (EBRD) and a group of European development finance institutions signed a loan agreement to grant a financing package to one of the leading independent commercial banks in the country.

The financing package to Unibank amounts to a total of $83 million, of which the EBRD is providing $37 million, Deutsche Investitions-und Entwicklungsgesellschaft mbH (DEG) $15.6 million, the Netherlands Development Finance Company (FMO) $15 million, and the Development Bank of Austria (OeEB) $10 million. Unibank's local shareholders are contributing with $5.4 million.

The package includes a $7 million equity investment, a $25 million senior convertible bond and a $51 million senior loan. The financing will be used to strengthen Unibank's capital base and will assist Unibank to carry on lending to the real economy in the current difficult environment.

The package is complemented by technical assistance provided by the partnering institutions to help Unibank strengthen its credit and risk management policies in the face of economic recession and develop a long term-funding base.

"This is the largest financial package in the history of private banking in Azerbaijan, and it demonstrates the high level of confidence that the international investors maintain in Unibank as well as in the Azeri banking sector, specifically in the times of the global financial and economic crisis. Notwithstanding instability and reduced liquidity in the global capital markets, the successful implementation of the past projects together with our valuable international partners as well as the timely fulfilment of the relevant liabilities enabled Unibank to attract additional funds to finance small and medium businesses and to foster the development of non-oil industry in Azerbaijan," said Faig Huseynov, Chairman of the Management Board of Unibank.

This project is a continuation of support that the bank renders to a banking sector in countries where it operates, in periods of weak external financing, said Head of the EBRD Baku Office Francis Dealey said. "The project will further strengthen the special relationship between our banks and will give access to Unibank to significant funding and increase confidence in the banking sector of Azerbaijan," he added.

"At FMO we value entrepreneurship as a key driver for development. Unibank has shown in recent years to be able to support the development of the private sector and this additional credit line will help further to increase access to finance for medium sized companies in Azerbaijan", stated Ruurd Brouwer, FMO's Director Financial Institutions.

"With this financing DEG continues its long-standing relationship with Unibank. As one of the bank's focus activities is on financing of small and medium-sized enterprises, the project contributes to securing jobs in this field. Given the current economic crisis, we have a special responsibility as a development finance agency, said Holger Rothenbusch, Head of DEG's Structured Finance division.

"This credit line to Unibank represents our kick-off project in a region which is of high importance for Austria. We trust that we can contribute to the stabilization of the financial sector and in consequence can actively promote the support of the Azeri economy," said Andrea Hagmann, Member of the Board of Executive Directors at OeEB.

Unibank is one of the top ten banks in Azerbaijan in terms of its financials. As of 1 June 2009, the assets and the loan portfolio of Unibank amounted to more than $456 million and $332 million respectively, total capital comprised USD 61 million.

Since 2003 the EBRD has provided to Unibank $21 million through equity and debt financing. EBRD and DEG are among Unibank's shareholders, holding respectively 15 per cent and 8 per cent of the shares.

Overall, since the beginning of its operations in Azerbaijan, the EBRD has committed over €800 million across more than 90 projects.

The EBRD, owned by 61 countries and two intergovernmental institutions, is supporting the development of market economies and democracies in countries from central Europe to central Asia.

DEG, member of KfW Bankengruppe (KfW banking group), finances investments of private companies in developing and transition countries.

FMO is the entrepreneurial development bank of the Netherlands. Our vision is that a thriving private sector will help create long-term, sustainable development impact. Our mission is to provide capital, share knowledge and create partnerships.

OeEB, the official Development Bank of Austria, is specialised in realising private-sector projects that have a sustainable impact on the regional economic development.

Do you have any feedback? Contact our journalist at: [email protected]

Moody's sees low risk stemming from waste and pollution issues in Georgia
Moody's sees low risk stemming from waste and pollution issues in Georgia
Georgia benefits from favorable debt structure - Moody
Georgia benefits from favorable debt structure - Moody
Iran's trade turnover with Qatar drops
Iran's trade turnover with Qatar drops
Loading Bars
Latest
We will do everything if Armenia has positive signals for us to try to build connections - President Aliyev
Moody's sees low risk stemming from waste and pollution issues in Georgia
Putin reaffirms Russia’s support for Lebanon’s sovereignty
Georgia benefits from favorable debt structure - Moody
Tipalti buys Approve.com in all-Israeli fintech merger
Iran's trade turnover with Qatar drops
UK job ads and restaurant bookings rebound as lockdown eases
Turkey issues data on volume of crude oil shipment via local ports from Jan. through Feb. 2021
Iran can enrich uranium to high degree – President Rouhani
Shell to raise share of has in hydrocarbon output to 55%
Kazakhstan set up task force to develop local investment management system
Production of catalysts for Iran’s petrochemical sector launched
Data on cotton yarn sales on Turkmen exchange in March 2021 revealed
Bank of America profit more than doubles on reserve release boost
Group of journalists visit Azerbaijan’s Aghdam district (PHOTO)
Russian company to supply big batch of agricultural machinery to Azerbaijan
Shell targets 2-3% reduction in carbon intensity this year
Iran’s PMO unveils volume of cargo loaded, unloaded in Fereidoonkenar port
2M2021 volume of stone coal shipment via Turkish ports disclosed
Data on shipment of goods across Turkish Antalya port from January through February 2021 disclosed
Graduate of Baku Higher Oil School marries Pakistani student from same university (PHOTO)
Data on cargo movement through Turkey's Gemlik port revealed
Turkey's steel exports to China surge
Turkey’s activity on Turkmen commodity and raw materials exchange in March 2021
Iran reveals COVID-19 data for April 15
Azerbaijan announces commissioning date for 'Victory Road' to liberated Shusha (PHOTO)
Revenues of Georgian Silknet mobile operator down
Iran’s Bahar Azadi gold coin price falling
Value of Iran's import of Turkish chemicals notably up
Azerbaijan improving access of entrepreneurs to insurance services
Turkey talks number of ships received at Aliaga port from Jan. through Feb. 2021
Kazakhstan boosts import of electrical goods from Turkey
Russia discloses amount of grains and legumes imported from Turkey
Central Bank of Azerbaijan holds foreign exchange auction
Iran to create major turning point on production of petrochemicals
Turkmenistan, French Public Investment Bank may sign MoU
Russian, Belarus presidents discuss situation in Karabakh via phone
Date of next interest payment on SOCAR bonds announced
Iran's Ilam Gas Refining Company discloses its production data
Microsoft implementing projects with Azerbaijan's educational institutions
Everything we agreed on will be implemented - President Lukashenko
Turkey hopes US won't recognize so-called "Armenian genocide" - Turkish FM
Azerbaijani PASHA Bank's Q12021 total assets grow
We are ready to share vaccine with Azerbaijan - President of Belarus
We reaffirmed strategic nature of relations between Belarus and Azerbaijan - President Lukashenko
President Ilham Aliyev is the best educated, civilized person of all presidents of post-Soviet space - President of Belarus
Nagorno-Karabakh conflict has now been resolved - President Aliyev
Culprit of what happened to Armenia is precisely Armenian leadership - Azerbaijani president
What Minsk Group will be doing is still unknown to us - President Aliyev
Iran's trade turnover with Turkmenistan down
We clearly defined our goals - Azerbaijani president
Companies from three friendly countries already working on reconstruction projects in Karabakh - President Aliyev
Turkish Energy Ministry prolongs Acacia Mining Operations license for oil, gas exploration
Belarus is our friend, trusted partner - Azerbaijani president
Turkish Airlines suspends flights to Russia
Russia reports over 8,900 daily COVID-19 cases
Kazakhstan resumes supplies of scrap metal to Russia
Russia's 2020 exports of chemicals to Azerbaijan disclosed
Кazakh Electricity Grid Operating Company to buy hydraulic press via tenders
Azerbaijan's AzerGold names winner of tender for purchasing ingot purity machine
Cargo movements in Iran's Genaveh port decline
Georgia reports 1,030 coronavirus cases for April 15
Kazakhstan’s KazMunayGas pays out coupon on its international bonds
Iran declares production data for sugar beet
Share of exports of Russian machinery, equipment, vehicles to Azerbaijan unveiled
Oil market may need extra supply in 2H 2021
War Trophy Park in Baku symbolizes heroic Azerbaijani people's triumphant victory - MP
Facebook signs first deal to buy renewable energy in India
Georgia to spend significant funds on tourism infrastructure in Akhaltsikhe
Top German health official says need to break third COVID-19 wave now
Iran's bitumen exports decrease
Azerbaijan sees increase in prices for silver, platinum, palladium
Turkmenistan should closely monitor bank balance sheets for asset quality risks - IMF
Minsk IT holding voices interest in Azerbaijani-Belarusian smart projects
European oil demand sees largest fall since April 2020
Cargo transportation volumes down in Kazakhstan
Moscow ahead of regional partners in terms of exports to Azerbaijan
Azerbaijan boosts exports to Iran
Azerbaijan expanding co-op with Turkey on mail, money transfers
Kazakhstan’s Tengizchevroil to possibly face criminal case
Former heads of state, gov't call on President Biden to waive intellectual property rules for COVID-vaccines
CPI up 0.6% in March, housing prices still rising
Uzbekistan looks to build first pumped storage power plant
IMF continues to promote Turkmenistan's structural reforms aimed at economic diversification
Process begins for inviting financial bids for AI, deal to conclude by Sep
India, France discuss boosting cooperation, greater collaboration in diverse sectors
German COVID-19 cases jump by most since early January
U.S. vows to help bring investment to assist India’s mitigation efforts
Azerbaijani oil prices continue to rise
Wizz Air forecasts gradual flying recovery into late summer
PM: Despite local constraints, India sent doses to 80 countries
Oil steady near one-month highs as IEA, OPEC raise forecasts
Footage from Azerbaijani Zangilan's Agh Oyuq village (VIDEO)
Kazakhstan’s oil-producing company opens tender to buy pumps
Russia to finance modernization of 14 oil refineries
Azerbaijani currency rates for Apr.15
France's 1Q2021 chemical imports from Turkey rise in value
Iranian currency rates for April 15
Azerbaijan sees growth in securities market
Minsk Group worked ineffectively for 30 years on Karabakh - MP
All news