Project description
and objectives:
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1. Capital Increase - the proposed project is to participate in the planned
capital increase by subscription to newly issued shares of Unibank. The
project will provide Unibank with substantial growth opportunities and will
help to further maintain its leading market position.
2. A/B Syndicated Loan - this is the 3rd syndicated loan that EBRD will
arrange to Unibank. The project will be used for general corporate finance
including but not limited to micro, small and medium enterprises, trade
finance and retail.
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Transition impact:
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Both projects will have high transition impact. In particular it will help
Unibank to maintain its market position and more importantly support its
growth and development going forward. This in turn will fuel competition in
the banking sector, improve standards of business conduct.
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The client:
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Unibank Commercial Bank, an open joint-stock company, is one of the leading
private banking institutions in the Republic of Azerbaijan, that was
incorporated in 2002 as a result of a merger between M-Bank and Promtechbank.
EBRD is a 15% shareholder in Unibank.
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EBRD finance:
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1. Equity investment through acquisition of newly issued shares of Unibank to
maintain 15% shareholding in the Bank.
2. The project is a syndicated loan structured in two portions. EBRD will
finance an A-portion (up to 3 years maturity), while a B-portion (18 months
maturity extendable for another 18 months on the consent of B-lenders) is
expected to be financed by the participating banks.
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Total project cost:
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To be confirmed.
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Environmental impact:
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Unibank will be required to carry out its operations in accordance with EBRD's
Environmental Procedures for Local Banks. In implementing these procedures,
the bank will require its borrowers to comply, at a minimum, with national
and/or local health, safety, environmental and public consultation
requirements.
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Technical
cooperation:
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Not associated with this operation, but Unibank has been benefiting from two
projects on the technical assistance:
(i) assistance of consultants helping Unibank to establish proper credit
approval procedures and processes, and
(ii) assistance of consultants focusing on the issues of institutional
building.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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Company contact:
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Mr. Faig Huseynov, Chairman of the Management Board
Tel: +994 12 598 22 44/45
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EBRD contact:
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Leonie See, Operation Leader: seel@ebrd.com
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Business opportunities:
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For business opportunities or procurement, contact the client company.
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General enquiries:
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EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com
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