Unileasing - Equity

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The proposed project consists of equity investment and debt financing to Unileasing, a subsidiary of Unibank, Azerbaijan. The company provides leasing finance to mainly SME clients across manufacturing, construction, medical, food processing and banking sectors. The EBRD’s investment will allow Unileasing to increase its market share both in Baku and the regions and to better diversify its leasing portfolio through attracting more small and medium enterprise clients. An investment in Unileasing will enable the Bank to undertake its first leasing project in the Azerbaijan. By providing a source of additional capital, institutional strengthening and overall management guidance the EBRD’s investment will enable Unileasing to be a leading company in the growing leasing market and in particular to support the needs for leasing products of individuals and SMEs. Unileasing was set up in 2004 by Unibank, a leading private commercial bank in Azerbaijan with an extensive corporate clientele and a large regional network. Within less than 2 years since start of its operations Unileasing built up a sizable lease portfolio and gained a 20 % market share of leasing market in Azerbaijan. An equity investment of up to USD 0.7 million to acquire of 33% stake in the company. A loan of USD 3 million to support the growth of Unileasing’s portfolio and assist the company’s regional expansion. USD 3.7 million. Unileasing shall comply with applicable Azerbaijan’ s national environmental, health, safety and labour regulations and standards. Unileasing will also be required to adopt and implement the EBRD’s Environmental Procedures for leasing companies, which include adherence to the Bank’s Environmental Exclusion and Referral Lists, compliance with the Core Labour Conventions of the International Labour Organisation related to the child and forced labour and discriminatory practices at work and submission of the Annual Environmental report to the Bank. ETC (Early Transition Country) funding of EUR 250,000 is allocated to provide consultancy services to Unileasing in order to develop and strengthen Unileasing’s key operations, organisational structure, maximise its institutional development and apply principles of good corporate governance. The ultimate objective is to enable Unileasing to succeed as a modern, competitive leasing company and serve as a model for other leasing companies in Azerbaijan and to maximise its value before a potential exit to a strategic investor. Hikmet Garibov, Chairman of the Board 92, Nizami str, Baku, AZ, 1010 Azerbaijan Republic Tel: (994 12) 498 8168 Fax (99412) 498 9129 Email: Hikmet.Garibov@unileasing.az