Azerbaijan, Baku, Aug.23 / Trend, I.Khalilova /
The European Bank for Reconstruction and Development (EBRD) and the German investment group DEG intend to remain the shareholders of the Azerbaijani Unibank for the next five years, the Bank said Aug.21.
"The desire to be shareholders of the Unibank was supported by granting a financial package worth $ 83 million, which was the giant deal in the private banking sector," the Bank said. This decision was taken by the Board of Directors of the Bank June 16, 2009.
On June 16, the EBRD Board of Directors decided to make a package deal with Unibank for the amount of $83 millionA package deal was submitted to the EBRD together with the German investment group DEG (Deutsche Investitions- und Entwicklungsgesellschaft mbH), the Netherlands financial company of development (FMO) and the Austrian Bank of Development (OeEB) to increase the lending capacity of Unibank in the real sector of the Azeri economy.
The funding from the EBRD will equal $42.7 million including the main debt equals $18.5 million.
The contributions of DEG, FMO and OeEB equal USD 14.8 million, USD 15 million and USD 10 million respectively. A part of the funding provided by the overseas shareholders of Unibank will be formalised as investment going into the share capital of Unibank.
"Part of the funds from the financial package is provided for three, and another - for five years, respectively, the EBRD and DEG are unlikely to leave composition of our bank's shareholders before expiration if these terms," Unibank said.
EBRD and DEG have package of Unibank shares in the amount of 15.15 and 8.33 percent accordingly. But they are entitled to leave staff of Azerbaijani bank share holders from 2008 upon signed agreement.
"Usually, we make investments in the capital for seven years and longer term. Regarding Unibank, we intend to preserve our role in business development of the Azerbaijani bank, and will continue to support it in the future, although we already have a mandate to sell shares in the capital of Unibank," EBRD Baku Office Francis Delaey said earlier.
Unibank is one of the top ten banks in Azerbaijan in terms of its financials.The authorized capital of the bank amounts to 36 million manat, and after couple of weeks after the emission payment will reach 41.6 million manat.
Aug.21, official exchange rate is 0.8038 manat to $1.