ENP Newswire - 03 September 2014
Release date- 01092014 - The European Bank for Reconstruction and Development (EBRD) has provided a syndicated loan of USD 42 million to one of Azerbaijan's leading private banks - DemirBank for the purposes of private sector development.
Of this total, USD 13 million were provided by EBRD and the remaining USD 29 million - syndicated by other banks. DemirBank will utilize the funds to expand financing of small and medium businesses. A part of syndicated funds have been invested for the period of up to 5 years, which is the longest period of investments allocated for an Azerbaijani bank to date.
Neil McKain, Head of EBRD Resident Office in Baku, said: 'Two large loans granted to DemirBank this year have increased our total investments in Azerbaijan up to UD 255 million which is higher than during the entire 2013. We are investing into economy of Azerbaijan from micro, small and medium businesses to large infrastructure projects and are very pleased by our cooperation with DemirBank in the field of supporting the private sector in Azerbaijan'.
Syndicated loan helps diversify sources of the bank's funding, providing long-term financing of small and medium businesses at low rates and encourages even greater confidence of partners in DemirBank'.
The first commercial bank of Azerbaijan, DemirBank started its operations in October 1989. Shareholders of the Banks include large international financial institutions, such as the European Bank for Reconstruction and Development (EBRD) and Netherlands Development Finance Company (FMO). DemirBank has the 'B' rating with 'positive' forecast of 'Planet Rating' and 'Fitch Ratings' agencies.