Senior Loan (Non-Convertible) - Unibank

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The EBRD is considering providing a financing package of up to USD 83 million to Unibank in the form of equity, convertible bonds and senior debt. The package is envisaged to be co-financed by Deutsche Investitions- und Entwicklungsgesellschaft mbH (‘DEG’), the Netherlands Development Finance Company (‘FMO’), and the Development Bank of Austria (‘OeEB’). The new financing will create a foundation for the growth of one of Azerbaijan’s leading independent commercial banks. This project is expected to have a significant transition impact, which is stems from: Unibank is one of the leading private, independent commercial banks in Azerbaijan with total assets of USD 513 million and total equity of USD 56 million as of 31 December 2008. Unibank is 75% owned by three local individuals, 15% by EBRD and 8% by DEG. EBRD will provide Unibank with USD 37 million new financing in the form of : USD 37 million. Screened FI. Currently Unibank applies its environmental and social risk management procedures only to transactions financed under EBRD and other international credit lines. Unibank will need to review its existing procedures in the context of the new EBRD Performance Requirements and ensure that acceptable environmental procedures are applied across the entire commercial lending portfolio. Unibank should ensure that its human resource policies are compliant with EBRD's Performance Requirement 2 on Labour and Working Conditions and develop a plan of action to achieve compliance in a reasonable time. Such compliance includes the implementation of a grievance mechanism for employees. Unibank shall not finance any activities included in the EBRD's Exclusion List: Unibank shall submit to the Bank annual environmental reports on implementation of the environmental and social procedures and Performance Requirements 2 and 9. It is envisaged that EBRD will provide consultancy funds of up to EUR 50,000 to support the implementation of a Corrective Action Plan at Unibank. The Plan will focus on improvement of risk management and development of a long-term sustainable funding base through the expansion of Unibank’s local deposit base. Faig Huseynov Chairman of the Executive Board Unibank tel:0099412 4982244 fax:0099412 4980953 E-mail: email: fh@unibank.az