11748 - Azerigazbank-II

Who We Are
Who We Are

IFC is the largest global development institution focused on the private sector in developing countries. By encouraging growth, IFC advances economic development, creates jobs and improves the lives of people.
More About Us
About IFC

Our Leadership

Development Partners
Accountability

Learn more about accountability
Annual Report

Download the Report
What We Do
What We Do

IFC advances economic development and improves the lives of people by encouraging the growth of the private sector in developing countries. We achieve this by investing in impactful projects, mobilizing other investors, and sharing expertise.
What We Do Overview
SOLUTIONS

Our products and services
OUR PRIORITIES

Climate Business

Fragile & Conflict Afflicted Situations

Gender

Mobilizing Private Capital

Sustainability
SECTORS & EXPERTISE

Agribusiness & Forestry

Creative Industries

Education

Financial Institutions

Funds

Health

Infrastructure

Manufacturing

Public-Private Partnerships

Tourism, Retail & Property

Trade & Supply Chain Finance

Venture Capital

Working Upstream
Where We Work
Where We Work

As the largest global development institution focused on the private sector, IFC operates in more than 100 countries around the globe. We apply lessons learned in one region to solve problems in another.
Overview
By Region

Africa

East Asia and Pacific

Europe

Latin America and the Caribbean

Middle East and Central Asia

South Asia
Our Impact
Our Impact

Our impact improves lives. IFC brings a clear set of advantages to the world’s most challenging markets. Including a history of innovation, a global mandate, and a determination to achieve measurable development impact.
Our Impact Overview
PRINCIPLES & MEASUREMENT

Impact Investing at IFC

Measuring and Monitoring (AIMM)

Evaluation

Sustainable Development Goals (SDGs)

Owned by 186 member countries and consistently rated AAA/Aaa. IFC aims to achieve our mission of promoting development by providing debt and equity to the private sector, through a range of benchmark and bespoke products.

For Partners

For Investors

Get in Touch

Summary of Proposed Investment

Project Number

11748

Company Name

AGBANK OJSC

Date SPI Disclosed

Mar 27, 2003

Country

Azerbaijan

Industry

Financial Markets

Projected Board Date

Apr 30, 2003

Status

Completed

Sector

Commercial Banking - General

Department

Regional Industry FIG LAC & EUR

Environmental Category

B - Limited

Previous Events

Approved : Apr 28, 2003
Signed : May 8, 2003
Invested : Nov 24, 2003

Project Description

Azerigazbank (AGB, or the bank) was established in 1992 by the companies of Azerigaz State Concern as a joint-stock investment bank. While AGB was established primarily to provide banking services to the various companies of the state-owned gas sector, it has since diversified its shareholder and customer base. AGB no longer lends to Azerigaz and its affiliated public-sector companies, and is shifting its focus toward retail banking.

In addition to the head office in Baku, Azerigazbank has 103 employees, 25 currency exchange offices, and 5 branches throughout Azerbaijan.

IFC has been approached by Azerigazbank for loan funds to on-lend to small businesses in Azerbaijan. The Bank wishes to increase the provision of financing to small businesses to strengthen the linkages between large oil and gas sector firms, the tourism industry and the small business market. There is currently a major shortage of funds targeted at this segment of the economy.

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	1.20
Equity

Development Impact

Environmental considerations. Azerigazbank is a category FI Type 1 project according to IFC’s environmental and social review procedure. The Banks must require and use its best efforts to ensure that its small enterprise clients comply with environmental, health and safety, and IFC’s Microfinance Exclusion List requirements on a national and local level. The Bank will also provide IFC with an annual environmental performance report and ensure that adequate number of staff members have been through IFC’s environmental training course.

Location of environmental documents In locally affected community
The Bank’s headquarters are located in Baku.

IFC’s experience over a range of micro and small business finance projects has shown that a financial institution whose main focus is small business finance provides an efficient means of reaching the small business target group with initial technical assistance support. Due to the small size of the Bank, streamlined credit evaluation procedures and appropriately tailed MIS and small loan monitoring technologies, can be put in place quickly with the help of on-site technical advisors. High efficiency levels for small business lending are therefore achieved in a relatively short timeframe.

The project is expected to strengthen the financial sector in Azerbaijan, which has an economy of significant gaps in funding for economic activity. In addition, there is potential for the development of small businesses which are directly linked with, and supply to, large companies within Azerbaijan’s oil and gas sectors.

The proposed TA support will make four major contributions to the Bank:

Create systems and procedures for prudent assessment of small business loan applications;
Create a small business development function within the bank to enable ongoing generation of new lending opportunities;
Create and implement a system within the institution to ensure that loans are properly monitored and portfolio risk is adequately controlled;
Implement a training program for branch managers, loan officers and credit analysts to strengthen the credit and risk management capacities of the bank.

Contacts

For Inquiries About the Project, Contact

Mr. Chingiz Asadullayev,

Chairman of the Supervisory Board

Phone: (994 12) 97 50 17

Fax: (994 12) 98 96 15

16 Landau Street, Baku Azerbaijan

This Summary of Project Information (SPI) is prepared and distributed to the public in advance of the IFC Board of Directors' consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC's activities, and this document should not be construed as presuming the outcome of the Board decision. Board dates are estimates only. The following SPI is disclosed in accordance with IFC's Disclosure of Information Policy that went into effect September 1998.

The map is for illustrative purposes and does not imply the expression of any opinion on the part of the World Bank, concerning the legal status of any country or territory or concerning the delimitation of frontiers or boundaries. Country borders or names do not necessarily reflect the World Bank Group's official position. In some cases, available project location information is limited to the country of the project's activities. Locations are approximate.

Projects

Summary of Proposed Investment

Project Description

Sponsor / Cost / Location

Development Impact

Similar Projects

Contacts

Projects

Summary of Proposed Investment

Project Description

Sponsor / Cost / Location

Project Sponsor and Major Shareholders of Project Company

Total Project Cost and Amount and Nature of IFC's Investment

Board Approved IFC Investment

Location of Project and Description of Site

Development Impact

Environmental and Social Issues - Category

IFC's Role and Additionality

Press-Release

Related ESRS/ERS

Similar Projects

Contacts

Disclaimer