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Technika Bank II

Azerbaijan | Financial Institutions

Identification Code:: OP/07/0669
Total Operation Cost:: — USD
Maturity:: 72 months
Operation Status:: BSTDB Approved Amount – Approval Date

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

8.000.000 USD – 06 Dec 2007
: Status:
Completed
Description and Purpose of the Operation:: BSTDB provides a Bank to Bank Loan to Bank Technique for financing mortgages. The Loan will support expansion of Bank Technique's mortgage lending program. In addition it will improve access of the Azerbaijan population to mortgage finance with ultimate objective to help residents improve their living conditions.
Countries of Operation:: Azerbaijan (100,00%)
Financial Product:: Financial Sector Development
Sector:: Financial Institutions
Domain:: Private
Borrower/Client:: Bank Technique is a universal private bank operating since 1994. It is ranked 4th in Azerbaijan in terms of assets. Bank Technique provides loans to customers engaged in trade, service and construction sectors, attracts deposits from legal entities and individuals, services current accounts of the clients, issues debit and credit cards to the individuals and executes documentary operations and electronic banking. Technika Bank has been the Bank's client since June 2006 when one-year unsecured credit facility for general purposes was extended and fully repaid in 2007.
Co-Financers/Participants:: —
Guarantors/Sponsors:: —
Developmental and Regional Cooperation Impact:: BSTDB is committed to expand its operations in the banking sector of Azerbaijan by increasing medium and long-term financing to the selected financial institutions to support the development of the country. Through the Facility BSTDB will enhance Bank Technique's mortgage lending capacity and will contribute to the improvement of the living conditions of the Azerbaijan citizens. The proposed transaction will be the first loan to be provided by an IFI to a local Azerbaijan bank with the purpose to finance residential mortgages and as such it is expected that it will have a high demonstration effect for both creditors and other local commercial banks. It will also improve the Borrower’s maturity gap profile.
Environmental Classification and Impact:: Residential mortgage financing is associated with a number of specific environmental risks related to safety of property to be financed such as site contamination, use of hazardous materials in construction, risk of flooding, land sliding, seismic activity and compliance with the applicable national construction and environmental standards and regulations. The Borrower is required to take into consideration these issues when financing residential property as part of the standard mortgage loan assessment procedure as well as observe the BSTDB Environmental Exclusion List and Negative List of Products and comply with the environmental regulations and standards of the Republic of Azerbaijan in its lending activities.
Operation Leader:: Financial Institutions II
E-mail:: fi2@bstdb.org