OREANDA-NEWS. July 28, 2008. Bank Respublika and Raiffeisen Zentralbank Oesterreich AG ("RZB”) of Austria have signed a loan agreement worth USD 50 million. This is the largest loan agreement in the history of the private banking sector in Azerbaijan, reported the press-centre of Bank Respublika.

It is also the first Credit Linked Notes agreement ever signed in Azerbaijan. RZB issued a USD 50 million loan to Bank Respublika; the Bank then used this amount to issue notes and sell them to various investors.

With this successful transaction, Bank Respublika has implemented the use of capital markets for raising additional funds in order to strengthen its positions in the market and support its ongoing growth strategy. It will also allow the Bank to expand its resources by means of utilizing investors’ funds from across Europe without blocking credit lines from partner banks.

The agreement was concluded for 3 years and the assets will be used for providing loans to the Bank’s customers.

The transaction was launched on June 25 and completed on July 2, following a series of Road Show presentations in Vienna, Frankfurt, Riga and London. Bank Respublika’s steady financial performance and professional management were highly estimated by investors, leading to a successful launch on the capital markets.

The geographic distribution of investors by country is as follows: UK - 52%, Austria - 18%, Baltic states - 13%, Russia - 5%, other countries - 12%. Funds make up 40% of the investors, banks - 30% and assets management companies - 30%.

Bank Respublika also actively cooperates with RZB on a trade financing program.

Bank Respublika has signed crediting and trade financing agreements worth over USD 200 million with international financial organizations. In particular, the Bank cooperates with such organizations as the European Bank for Reconstruction and Development, Asian Development Bank, International Finance Corporation, Standard Bank Plc. (London), Netherlands Development Finance Company FMO, German Investment Company DEG, the Black Sea Trade and Development Bank, the German-Azerbaijani Foundation, RZB, Sumitomo Mitsui Banking Corporation, Commerzbank AG, Dresdner Bank and others.

Bank Respublika launched its operations in 1992 and is currently one of Azerbaijan’s leading banks . The list of the Bank's shareholders includes two large German financial organizations, DEG, a member of the KfW banking group, and SIDT, a member of Sparkassen-Finanzgruppe; together, they hold a 25% + 1 share in the Bank.

Bank Respublika has received a rating of B2 with a positive outlook from Moody's Investors Service, an international rating agency.

The  Bank’sassets currently total AZN 370,2 million, its credit portfolio - AZN 232,5 million and its deposit portfolio - AZN 141,8 million. Bank Respublika has 28 branches and service points in Baku and the regions of Azerbaijan.