Baku, Azerbaijan, June 30
The European Bank for Reconstruction and Development (EBRD) and DEG - Deutsche Investitions- und Entwicklungsgesellschaft mbH, a subsidiary of KfW Bankengruppe, are joining forces to increase the share capital of Unibank, one of the leading private commercial banks in Azerbaijan, by 49 million manats (US dollar equivalent) in aggregate, read a message from EBRD.
The EBRD is contributing to the share capital increase by converting up to $9 million of its existing debt in the bank into new ordinary voting shares, thereby increasing its stake to 22.0 per cent.
DEG is converting up to $15 million of its debt into new ordinary voting shares, with its stake increasing to 27.6 percent.
Eldar Garibov, the majority shareholder of Unibank, is subscribing new ordinary voting shares for 10 million manats, thereby retaining a controlling stake in the bank alongside other local shareholders.
“The EBRD supports Unibank, its long-standing partner in Azerbaijan, by participating in the strengthening of its capital base. This will facilitate the bank’s recovery from the negative impact of the devaluation of the local currency manat and enable it to restart lending to the local economy”, said Ivana Duarte, head of the EBRD office in Baku.
The EBRD is a leading institutional investor in Azerbaijan. Since the start of its operations in the country the Bank has invested over $2.8 billion in 161 projects in the financial, corporate, infrastructure and energy sectors, with 68 per cent of those investments in the private sector.