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Unibank SME Loan Facility

Azerbaijan | Financial Institutions

Identification Code:: OP/06/0615
Total Operation Cost:: — USD
Maturity:: 60 months
Operation Status:: BSTDB Approved Amount – Approval Date

5.000.000 USD – 01 Dec 2007
: BSTDB Signed Amount – Signed Date

5.000.000 USD – 14 Feb 2008
: Status:
Completed
Description and Purpose of the Operation:: The proceeds of the Facility are used by Unibank exclusively for the purpose of financing sub-loans to eligible micro, small and medium sized companies in Azerbaijan. Unibank is an existing BSTDB financial intermediary in Azerbaijan with $3 million Trade Finance facility.
Countries of Operation:: Azerbaijan (100,00%)
Financial Product:: SME's
Sector:: Financial Institutions
Domain:: Private
Borrower/Client:: Unibank open joint-stock company is one of the leading private banking institutions in Azerbaijan. It was established in 2002 as a result of a merger between M-Bank and Promtechbank. EBRD owns a minority stake in the bank. In addition to the existing Trade Finance line, the SME project is supporting the private sector development and new jobs creation in the country.
Co-Financers/Participants:: —
Guarantors/Sponsors:: —
Developmental and Regional Cooperation Impact:: The SME Loan Facility will enhance the financing options for micro, small and medium-sized companies in Azerbaijan and complement the BSTDB Trade Finance program in Azerbaijan. Moreover, BSTDB will support an existing financial intermediary by providing access to increased funding to finance the growing loan portfolio. The project will also demonstrate viability of providing longer term funding to Azerbaijan's developing small and medium enterprise sector. In the interest of facilitating economic development in member countries, BSTDB wants to support local financial intermediaries, in this case Unibank, and help this important sector of the economy grow.
Environmental Classification and Impact:: The Borrower has adopted and implemented the basic environmental procedures satisfactory to BSTDB and has integrated them as fully as possible into its credit/investment appraisal and monitoring process. The Borrower is required to undertake environmental assessment of the sub-loans with medium and high environmental risk, as well as ensure proper monitoring of these operations; ensure compliance of the sub- loans with applicable national EH&S requirements; continue to adhere to the Bank' s Environmental Exclusion List and Negative List of Goods; submit annual EH&S performance reports.
Operation Leader:: Financial Institutions I
E-mail:: fi1@bstdb.org