Financed ProjectsDemirbank 2 -SME Facility

Identification Code:

OP/07/0661

Total Operation Cost:

0

Maturity:

60 months

Operation Status:

Description and Purpose of the Operation:

Provision of a Bank to Bank Loan to DemrBank, Azerbaijan for SME financing purposes. The proceeds of the Loan shall be used by DemirBank exclusively for the purpose of providing SME sub-loans to local borrowers eligible in accordance with criteria agreed with BSTDB.

Countries of Operation:

Azerbaijan (100,00 %)

Financial Product:

SME's

Sector:

Financial Institutions

Domain:

Private

Borrower/Client:

DemirBank (former Azerdemiryolbank) is a private bank founded in 1989. DemirBank provides consumer and corporate loans, with a major share of its loan portfolio accounting for micro and small and medium sized enterprises, trade and financing in construction and manufacturing sectors. DemirBank is an existing client of BSTDB since 2006 with a positive credit history and excellent performance.

Co-Financiers/Participants:

Guarantors/Sponsors:

Developmental and Regional Cooperation Impact:

The SME Loan Facility will enhance the financing options for micro, small and medium-sized companies in Azerbaijan and complement BSTDB's Trade Finance program in Azerbaijan. Moreover, BSTDB will support one of its existing associates by providing access to international funding to finance the growing loan portfolio. The operation will also demonstrate viability of providing longer term funding to Azerbaijan's developing small and medium enterprise sector.

Environmental Classification and Impact (summary):

Demir Bank has adopted a basic environmental procedure (based on EBRD requirements), 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 environmental regulations and standards of the Republic of Azerbaijan. No other environmental requirements shall be required for the purpose of this transaction.

Operation Leader:

Financial Institutions II

E-mail:

fi2@bstdb.org