BSTDB Extends Euro 5 Million to Finance a Glass Factory in Azerbaijan
Press Release | 16-Aug-2005
The Black Sea Trade & Development Bank will make available EUR 5 million for investment in equipment and machinery at a glass factory in Baky, Azerbaijan. The 5-year loan will be extended to International Bank of Azerbaijan (IBA) for on-lending to Caspian Management Systems LTD, a private Azeri company which acquired the factory under the Azeri privatization program.
The BSTDB financing will contribute to the total project cost of EUR 15,4 million, which shall develop the glass plant capacity of 100 million jars and bottles per year and provide employment for about 100 people. The factory will supply its produce to Azeri manufactures of canned food and beverages who currently import glass containers at rather high prices due to high transportation costs.
The developmental impact of the operation involves the import substitution and employment generation in Azerbaijan.
International Bank of Azerbaijan is a majority state owned biggest bank in the country and has a share of over 50% in the assets of Azeri banking system. In 2004, IBA’s total loans portfolio reached over USD 400 million, and the net profit amounted to USD 14 million. IBA has a rating of B+ with positive outlook assigned by Fitch agency for long-term foreign currency borrowings.
IBA is successfully implementing a BSTDB trade finance facility of USD 6.5 million provided in 2003.
BSTDB is an international financial institution established by Albania, Armenia, Azerbaijan, Bulgaria, Georgia, Greece, Moldova, Romania, Russia, Türkiye, and Ukraine. The BSTDB headquarters are in Thessaloniki, Greece. With an authorized capital of SDR 1 billion (approx. USD 1.5 billion), the Bank supports economic development and regional cooperation by providing financing, guarantees, and equity for projects in the public and private sectors in its member countries. Since the commencement of operations in 1999, BSTDB has approved projects and trade finance operations totaling over USD 675 million. BSTDB is rated long term Baa2 and short term P2 by Moody’s.