Azerbaijan, Baku, Oct. 15 / Trend , N.Ismayilova/
For a month, the Azerbaijani Unibank will get a tranche from the European Bank for Reconstruction and Development (EBRD) and a group of financial institutions in Europe to issue convertible bonds in the financial package worth $83 million, Chairman of the Supervisory Board of Bank, Eldar Garibov said at the Baku II International Banking Conference of the States the CIS. According to the previously signed agreement, the bank will issue bonds worth $25 million.
"Part of this package will focus on debt repayment before the Central Bank of the country," said Garibov.
He said the bank has received gradually the funds attracted by the Central Bank, and simultaneously pay off them.
Garibov said the bank has already received $58 million from international financial institutions within the financial package worth $83 million.
"The bank has excess liquidity in 50 million -60 million manat, which is short," said Garibov.
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.