Unibank Became First Azeri Bank Receiving Subordinated Loan
UniBank CB is the first bank in the history of Azerbaijan banking system to be in receipt of a subordinated loan, Trend reports with reference to the statement of the Bank.
The subordinated finance agreement for the total amount of $5 mln was signed on 13 December. The funding is provided to UniBank by FMO (the Netherlands Development Finance Company) for 7 years.
The proceeds of this loan will serve as an added source for forming the second tier capital,' commented Gulnara Gurbanova, the International Relations Manager with UniBank.
Incidentally, a SME on-lending credit line was signed on 11 December.
This credit line from FMO extended to our Bank equals $5 mln provided for 5 years,' Mrs. Gurbanova mentioned.
The international co-operation has always been one of the most important elements of strategic development with UniBank. In this connection, we are glad to note that it is precisely our Bank that borrowed the first subordinated loan ever in Azerbaijan. The proceeds of this loan as well as those of the credit line extended for the SME finance are designed to expand the lending capacity of UniBank,' says Faig Huseynov, Chairman of the Executive Board of UniBank. It should be mentioned that the aggregate capital of UniBank equaled AZN 14,016,250 on 1 December 2006.