Summary of Proposed Investment
Project Number
25047
Company Name
Bank Respublika JSC
Date SPI Disclosed
Nov 21, 2006
Country
Azerbaijan
Industry
Financial Markets
Projected Board Date
Dec 21, 2006
Status
Completed
Sector
Commercial Banking - General
Department
Global Industry, Financial Markets
Environmental Category
FI
Previous Events
Approved : Jan 29, 2007
Signed : Mar 9, 2007
Invested : May 3, 2007
Project Description
Respublika Bank (Respublika or the Bank) of is one of the leading private and independent banks in Azerbaijan providing services primarily to Small and Medium Enterprises (SMEs), local entrepreneurs and individuals. Respublika was established in 1992 as a private commercial joint-stock bank. Since 2002, the Bank has made a strategic decision aimed at aggressive growth and cooperation with international institutions. Respublika is ranked among the top ten banks in Azerbaijan in terms of assets, size of loan portfolio, deposits and profitability. The Bank is managed by a new dynamic management team. Its longer term strategy is focused on becoming a leader in SMEs and retail business with an extensive branch network and a stable customer base.
To support the Bank’s growth, IFC is considering investment in Respublika. The proposed transaction consists of:
- a senior loan of up to $4.5 million, and
- an equity investment of up to $1.5 million.
The proposed loan will have a maturity of five years with a two year grace period for principal repayment and will be used to on-lend to SMEs. The investment will be supplemented by technical assistance to contribute to the institutional capacity building of the Bank and improve such areas as corporate governance, risk management and internal audit.
To support the Bank’s growth, IFC is considering investment in Respublika. The proposed transaction consists of:
- a senior loan of up to $4.5 million, and
- an equity investment of up to $1.5 million.
The proposed loan will have a maturity of five years with a two year grace period for principal repayment and will be used to on-lend to SMEs. The investment will be supplemented by technical assistance to contribute to the institutional capacity building of the Bank and improve such areas as corporate governance, risk management and internal audit.
Sponsor / Cost / Location
Development Impact
Related ESRS/ERS
Contacts
For Inquiries About the Project, Contact
Ms. Khadija Hasanova, Chairman of the Management Board
Respublika Bank, 21, Khagani Street
AZ1000 Baku, Azerbaijan
Telephone: +99412 598-08-00
Fax: +99412 598-08-80
Website: http://www.bankrespublika.az/
Respublika Bank, 21, Khagani Street
AZ1000 Baku, Azerbaijan
Telephone: +99412 598-08-00
Fax: +99412 598-08-80
Website: http://www.bankrespublika.az/
For Inquiries and Comments About IFC, Contact
General IFC Inquiries
IFC Corporate Relations
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384
E Mail: Webmaster
IFC Corporate Relations
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384
E Mail: Webmaster