OREANDA-NEWS. The EBRD is supporting the dynamic growth of Unibank, one of Azerbaijan’s leading private banks, with an international syndicated loan which will promote further competition in the country’s banking sector. Access to finance remains one of the key obstacles for the development and growth of private banks in Azerbaijan and this transaction is a strong positive signal, especially in light of the current market conditions, reported the press-centre of EBRD.

The loan received a strong response from the market and was increased from $30 million to $35 million to meet demand. The following financial institutions have participated in the syndicated loan facility: Anglo-Romanian Bank Limited, RZB Group, State Bank of India, VTB Bank Europe, Indover Bank, Wachovia Bank, Chinatrust Commercial Bank, Land Bank of Taiwan, Offshore Banking Branch, National City Bank, Banco Efisa, Banque de Commerce et de Placements, DHB Bank, Hipoteku Banka and Credit Europe Bank (Suisse).

Structured and arranged by the EBRD under it’s A/B structure, the $8,75 million A loan will have a maturity of three years, while the $26,25 million B loan provided by participating banks will have a maturity of 18 months, with an option to extend by a further 18 months. The B Loan was priced at LIBOR + 3,00%.

Unibank was set up in 2002 as a result of the merger of Mbank and Promtechbank. In the largely state-dominated Azerbaijani banking sector Unibank has developed into the leading private commercial, independent bank focusing on business - especially micro, small and medium-sized enterprises - and individual clients.

Varel Freeman, EBRD First Vice President, said the EBRD’s role in the country remains crucial given that local banks lack access to international capital. The Bank is committed to provide support for the further growth and development of institutions like Unibank and facilitate their access to international capital markets of which the new financial package to the bank is an example.

Faig Huseynov, Chairman of the Executive Board of Unibank, said “having been the first Azeri private bank to attract a syndicated loan from an IFI in April 2005, Unibank is delighted to continue its development by signing already its third loan agreement with the EBRD. This agreement is even more significant due to larger amount and extended number of participants. This signifies the solid trust of the international bank community in Unibank.”

To date the EBRD has invested more than ?720 million in Azerbaijan through more than 80 projects. Through its investments in the enterprise, financial and infrastructure sectors the Bank supports structural reforms to make Azerbaijan’s rapid growth sustainable.