Financed ProjectsTechnikabank I

Identification Code:

OP/06/0561

Total Operation Cost:

0

Maturity:

12 months

Operation Status:

Description and Purpose of the Operation:

Provision of a Bank to Bank Loan to Technika Bank to be used for general banking operations including: short-term financing of specific projects for the creation, modernisation, expansion and diversification of any business facilities; working capital financing for trade, service, infrastructural and manufacturing enterprises for general day-to-day operations; export and pre-export financing of industrial enterprises manufacturing for export and producing hard currency revenues, provided that the term of any such export financing does not exceed 360 days and other banking operations except interbank loans.

Countries of Operation:

Azerbaijan (100,00 %)

Financial Product:

Loans

Sector:

Financial Institutions

Domain:

Private

Borrower/Client:

Technikabank operates under a full banking license since 1994. It is second largest private bank in Azerbaijan in terms of assets and contributs to 4.1% of Azeri banking assets at end-2005 with total consolidated assets of AZM 318.2 billion (US$ 69 million) and total equity of AZM 60.2 billion (US$13.1 million). Technikabank is the largest private bank in Azerbaijan in terms of branch network with 26 branches spread out across the country. It has 398 employees. Technikabank is a universal bank which provides full range of banking services - credit lines to the trade, service and construction spheres, deposits from legal entities and individuals, service of current accounts of the clients, issues of debit and credit cards to the individuals, executes documentary operations and electronic banking. Technikabank is not rated.

Co-Financiers/Participants:

Guarantors/Sponsors:

Developmental and Regional Cooperation Impact:

The loan to Technikabank demonstrates BSTDB commitment to support the development of the banking sector in Azerbaijan. Funds will be used mainly to improve balance sheet structure of Technikabank and diversify its liability base. BSTDB will support Technikabank by providing access to international funding to finance its growing lending operations. The short term nature of the loan will support more companies and more trade through high turn-over of capital for short-term transactions.

Environmental Classification and Impact (summary):

Technikabank will be required to adopt a basic environmental procedure, which is found satisfactory to BSTDB and has integrated it into its credit/investment appraisal and monitoring process. The Loan Agreement shall require the Client to ensure that its sub-loans comply with: 1) the BSTDB Environmental Exclusion List and Negative List of Products; and 2) the national environmental regulations and standards.

Operation Leader:

Financial Institutions II

E-mail:

fi2@bstdb.org