UniBank and EBRD to sign syndicated credit agreement
This week, a credit agreement will be signed between the European Bank for Reconstruction and Development (EBRD) and Azerbaijani commercial bank UniBank, the head of EBRD Baku office Raymond Chonvey told Trend. UniBank will gain a syndicated credit amounting to $7.5 million.
The participation share of EBRD in the syndicate equals $2.5 mln., with a period of up to 3 years. The remaining part of the credit of $5 mln is financed by other participants of the syndicate. The credit finance will be directed towards developing small and medium entrepreneurship. The credit resources are forbidden to be used for arm trade, production of tobacco and alcoholic goods.
According to the head of EBRD Baku office, a mission headed by the banker of the group for financial institutions in EBRD Sardor Umurzakov will arrive in Baku to participate in the signing ceremony.
It will be the second syndicated credit for supporting small and medium business that is provided by EBRD for Azerbaijani bank. Together with EBRD, Austrian Creditanstalt and Anglo-Romanian Bank also participated in the first syndicate. The agreement on the first syndicate totaling $5 mln between UniBank and them was concluded on April 8, 2005, with a term of up to 3 years. Of this, $1.5 mln was allocated by EBRD. This credit line has been fully used.