Financed ProjectsInternational Bank of Azerbaijan

Identification Code:

OP/99/0007

Total Operation Cost:

0

Maturity:

22 months

Operation Status:

Description and Purpose of the Operation:

BSTDB provided a Multiple Buyer Credit Facility to assist the IBA, the first financial intermediary of BSTDB in Azerbaijan, in extending short to medium term import financing to customers in Azerbaijan who import goods from member countries.

Countries of Operation:

Azerbaijan (100,00 %)

Financial Product:

Trade Finance

Sector:

Financial Institutions

Domain:

Private

Borrower/Client:

The International Bank of Azerbaijan is the largest bank in the country, and in its majority it is owned and controlled by the Ministry of Finance. It contributes significantly to the stability of the banking system of Azerbaijan, as well as to the socio-economic development of the country. IBA offers full range of services related to foreign trade and has broad and well-established relations with all major Azerbaijani trading companies.

Co-Financiers/Participants:

Guarantors/Sponsors:

Developmental and Regional Cooperation Impact:

In cooperation with IBA, BSTDB will be able to reach a larger number of companies in Azerbaijan and contribute to the increase of intra- regional trade among the member countries. This will help the development of regional economic cooperation, and it will promote the competitiveness of regional products, as well as manufacturing and trade of capital goods. It will also generate foreign exchange for the region, and contribute to the increase of employment.

Environmental Classification and Impact (summary):

In order to reduce/avoid any Environmental, Health & Safety (EH&S) impacts that potentially may arise from trade finance activities the Borrower is required to follow the BSTDB's Negative List of Goods, including the Environmental Exclusion List, and subject domestic legal requirements, as well as make sure that the Beneficiaries fully comply with these requirements. The Borrower is also required to immediately notify the Bank of occurrence of any incident or accident relating to any underlying export or import transaction of which the Borrower is, or ought to be aware, and which is likely to adversely affect the state of environment, and/or human health and safety.

Operation Leader:

Financial Institutions I

E-mail:

fi1@bstdb.org