Bank Respublika A/B loan

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The proposed Project consists of a debut syndicated loan of USD 14 million to Bank Respublika for on-lending to private sector businesses in Azerbaijan. Tranche B of this A/B structure loan will be syndicated and will have a maturity of 18 months. The facility will help Bank Respublika in accessing international capital markets, support the diversification of its funding and the expansion of its SME and privately owned client base. The project will have a significant transition impact in the following areas: facilitate Bank Respublika’s access to the international commercial debt market and help to diversify the bank’s funding base support development of the private companies and banking sector in Azerbaijan by increasing medium-term financing to the productive sector of the economy through local banks. JSC Bank Respublika is a privately owned commercial bank operating in Azerbaijan with total assets of USD 128 million and shareholders’ equity of USD 13.5 million as of 31 December 2006. EBRD will retain up to USD 6 million on its own account. An amount of USD 8 million under the B-Loan will offered to the syndication market. USD 14 million. Bank Respublika will be required to comply with the EBRD’s Environmental Procedures for Intermediated Financing through Local Banks, including ensuring compliance with the applicable national environmental, health, safety and labour standards and regulations, adherence to the EBRD’s Environmental Exclusion and Referral List and submission of annual environmental reports to the Bank. Bank Respublika has been participating amongst 7 other banks in technical assistance programmes provided by EBRD under Azerbaijan Multi-Bank Framework to improve the bank’s SME and micro lending capacity as well as amongst 2 other banks under Medium Co-financing facility. The technical assistance programmes are being funded by EU Tacis and ETC Multi Donor Initiative Fund. Mr Erhan Javad Director of Financial Institutions and Trade Finance Department Tel: +994 12 598 0800 Fax: +994 12 598 0880 E-mail: ErhanJ@BankRespublika.az