The FINANCIAL — According to APA-Economics, Asian Development Bank and Azerbaijan’s Bank Respublika have signed on December 17 a subordinate loan agreement.
The agreement was signed by William Willms, ADB Director of Capital Markets and Financial Sectors Division, and Khadija Hasanova, Chair of the Management Board of Bank Respublika.
The deal is providing a US dollar denominated subordinated loan (Tier 2 capital) of $10 million to Bank Respublika in order to strengthen the bank’s capital position and underpin the expansion of its lending activities, particularly to small and medium-sized enterprises. The loan was lent for 8 years.
“Bank Respublika’s authorized capital is AZN 12 million now and the loan will allow to nearly doubling it next year,” said Hasanova.
William Willms added that that Asian Development Bank forges good cooperation with the best banks in Azerbaijan and it is expected to sign new agreements with banks in the future.
Bank Respublika has been cooperating with the ADB since 2005 and the ADB opened the first $8 million credit line to the bank in 2006.
DEG Investment Corporation and Sparkassen International Development Trust hold a 25%+1 joint stake in Bank Respublika. The bank’s assets stood at AZN 235 million and loans received from international financial institutions reached $20 million.
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