BSTDB supports Azerbaijani mortgage market

News | 03-Jun-2008

The Black Sea Trade and Development Bank (BSTDB) provided a USD 12 million six year loan to Kapital bank (Azerbaijan) for mortgage financing. Kapital bank will use the facility to provide mortgage loans to private individuals.

The BSTDB financing will enhance Kapital Bank’s mortgage lending capacity and will contribute to the increased financial intermediation and improvement of the living conditions of the Azerbaijani citizens.

The operation will support the development of the mortgage market in Azerbaijan and respond to the Azerbaijani government priority to provide people with opportunities to improve their housing conditions. Correspondingly, mortgage market growth positively affects housing and construction spreading its development impact in important complementary sectors benefiting employment and production.

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Established in 2000, Kapital Bank has been BSTDB’s client since 2006 when a one-year general purpose unsecured credit facility was granted to them. Kapital Bank is the largest in Azerbaijan in terms of the size of its branch-network. The bank is rated by Fitch (since 2006) and by Moody’s (since 2006).

The Black Sea Trade and Development Bank (BSTDB) is an international financial institution established by Albania, Armenia, Azerbaijan, Bulgaria, Georgia, Greece, Moldova, Romania, Russia, Türkiye, and Ukraine. The BSTDB headquarters is in Thessaloniki, Greece. The Bank supports economic development and regional cooperation by providing loans, credit lines, equity and guarantees for projects in the public and private sectors in its member countries. BSTDB is rated Long Term Baa1 and Short Term P2 (both with positive outlook) by Moody’s.