OREANDA-NEWS. The EBRD is arranging a $24 million syndicated loan for Bank Respublika, a leading privately owned commercial bank in Azerbaijan. The initial amount of the facility has been increased from $11 million following a strong market demand, reported the press-centre of EBRD.

This is the first syndicated loan received by Bank Respublika in its 15 year history. This commercial financing sets the stage for sustainable future financing for Bank Respublika on international capital markets.

The loan will comprise an A Loan of up to US$ 6 million for the EBRD’s own account and a B Loan of up to US$18 million for the account of participating commercial banks, which include Cordiant, Credit Europe Bank N.V, Erste Bank, Raiffeisen Zentralbank Osterreich Aktiengesellschaft, Dresdner Kleinwort, N.V. De Indonesische Overzeese Bank and Banque de Commerce et de Placements SA

In addition, the EBRD will also provide a $5 million credit line for on-lending to private micro, small and medium-sized (MSME) enterprises. This includes participation of the Regional Development Initiative Special Fund and the International Cooperation and Development Fund Taipei China (TaiwanICDF) out of the Financial Intermediary Investment Special Fund which provided $1 million each for micro finance.

Bank Respublika, the sixth largest bank in Azerbaijan by total assets, is a universal commercial bank providing a wide range of banking services to corporate clients, SMEs and individual customers. The bank is dynamically expanding its product range and its branch network.

The EBRD has so far provided Bank Respublika with six credit lines for on-lending to micro, small and medium sized-enterprises. The bank is also a partner in the EBRD’s Trade Finance Programme and a co-financing programme whereby the EBRD shares the credit risk of Bank Respublika’s large customers.

Kurt Geiger EBRD Director for Financial Institutions, said “The loan is a continuation of the fruitful relationship the EBRD already has with Bank Respublika and represents a new milestone achievement. The syndication feature of the loan will help the bank to expand lending to its privately owned customers and also diversify its funding base.”

Khadija Hasanova, Chairwoman of Bank Respublika’s Executive Board, said “we have been cooperating with the EBRD since 2004 as our first international partner. With the signing of today’s agreement we are entering a new level of cooperation. We are pleased that leading banks of the world are participating in this syndicated loan which will give us an opportunity to expand our activities.”