Financed ProjectsDemirbank 4 - Micro & SME financing.

Identification Code:

OP/13/0034

Total Operation Cost:

10.000.000

Maturity:

60 months

Operation Status:

Description and Purpose of the Operation:

The USD 10 million medium-term Loan to DemirBank, Azerbaijan, aims to contribute towards expanding of the SME lending program of DemirBank thus facilitate the access to medium term finance for micro, small and medium sized private businesses and entrepreneurs. The proceeds of the Loan shall be used by the Borrower exclusively for the purpose of providing loans to Micro and SMEs in accordance with the eligibility criteria agreed with the Bank.

Countries of Operation:

Azerbaijan (100,00 %)

Financial Product:

SME's

Sector:

Financial Institutions

Domain:

Private

Borrower/Client:

Demirbank OJSC

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 with longer term funding. The Project is expected to have modest but favourable economic benefits for the Azerbaijani economy such as, additional tax revenue gains from incremental economic activity, increases in employment, increase in export capacity and competitiveness and multiplier effects for other parts of the economy. The regional cooperation element is similarly expected to be favorable.

Environmental Classification and Impact (summary):

Being an existing client since 2006, the Borrower has adopted an Environmental Policy and comprehensive Environmental Procedures which were found satisfactory to BSTDB and which, have been integrated fully into its credit/investment appraisal and monitoring process. The Borrower also adopted an Exclusion List similar to BSTDB Negative List of Products and Services. The Borrower shall be required to remain compliant at all times with local and BSTDB EHS requirements. No other environmental requirements are deemed necessary for the purpose of this transaction.

Operation Leader:

Financial Institutions II

E-mail:

fi2@bstdb.org