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Turanbank SME II

Azerbaijan | Financial Institutions

Identification Code:: OP/21/0025
Total Operation Cost:: 10.000.000 AZN
Maturity:: 24 months
Operation Status:: BSTDB Approved Amount – Approval Date

10.000.000 AZN – 29 Jul 2021
: BSTDB Signed Amount – Signed Date

10.000.000 AZN – 29 Jul 2021
: Status:
Completed
Description and Purpose of the Operation:: Turanbank SME II
Countries of Operation:: Azerbaijan (100,00%)
Financial Product:: SME's
Sector:: Financial Institutions
Domain:: Private
Borrower/Client:: 2nd Local Currency SME Facility to Turanbank
Co-Financers/Participants:: n/a
Guarantors/Sponsors:: n/a
Developmental and Regional Cooperation Impact:: The Project is expected to have modest but favorable economic benefits for the Azerbaijani economy, the most relevant being additional tax revenue gains from increased economic activity under the additional amount provided. In addition, the additional amount provided will help further enhance benefits such as increases in employment, increase in export capacity and competitiveness, and multiplier effects for other parts of the economy. The regional cooperation element is likely to be limited or absent at all given the small size of the operation. Other BSTDB countries are important trade partners for Azerbaijan so if any benefitting SME is to export or import, it will likely be with BSTDB member country.
Environmental Classification and Impact:: Turanbank environmental and social management system is governed by its Corporate Social Responsibility Policy. The policy was developed with the assistance of, and in compliance with IFC environmental and social requirements towards financial intermediaries. Thus, according to the policy statements the Borrower commits to identify and assess any environmental and social risks and impacts which might be associated with its lending activities and take preventive measures to avoid and\or mitigate such risks and impacts and integrate these aspects into the credit approval process. Turanbank also developed internal procedures to support the policy implementation, which incorporate the basic elements necessary to ensure a good environmental and social risks management by a financial institution. These include the preliminary screening by the loan officers of any new request for financing against the internal exclusion list (compatible with the BSTDB Environmental and Social Exclusion List), as well as national legal requirements; assigning of the environmental and social risk category (A, B, C and FI); conducting of environmental and social analysis for category A and B projects; identification of the necessary mitigation measures and translating these into covenants of the credit contracts, which also include annual reporting requirements. The coordination of the Corporate Social Responsibility Policy is assigned to various departments of Turanbank, including the credit department, business development, public relations and HR. The implementation on the other hand is assigned to the Corporate Social Responsibility (CSR) Officers who are involved in the daily management of environmental and social risks. Overall, Turanbank has a functioning environmental and social management system in place, considering that it is staffed appropriately, it efficiently manages risks and impacts that potentially may arise from its portfolio. Turanbank meets the environmental and social requirements of BSTDB towards financial intermediaries.
Operation Leader:: Financial Institutions I
E-mail:: fi1@bstdb.org