📋 Tender Overview
Location:
Azerbaijan
Project number:
55726
Business sector:
Financial institutions
Notice type:
Private
Environmental category:
FI
Approval date:
04 Mar 2025
Status:
Approved
English-language PSD published:
14 Mar 2025
Project Description
USD 10 million senior unsecured loan in two equal tranches to Unibank for on-lending to eligible MSME sub-borrowers. The loan will have a maturity of up to 2 years, and will be provided in AZN to be used by Unibank for the growth of its MSME loan portfolio in line with the eligibility criteria of the Financial Intermediary Framework ("FIF").
In parallel to the MSME loan, an uncommitted limit under the Bank's Trade Finance Programme for USD 5 million will be established.
Transition Impact
ETI score: 60
The project contributes to the objectives of the Financial Intermediary Framework ("FIF"), supporting the Competitive and Resilient transition qualities. FIF seeks to (i) foster MSME competitiveness by increasing availability of financing and (ii) contribute to the competitiveness of financial institutions by enabling innovation in strategy, products, processes, and marketing related to MSME lending. By ensuring that banks have adequate underwriting and risk management practices in place, the FIF also seeks to encourage sustainable lending practices, supporting the resilience of the financial system.
Client Information
UNIBANK COMMERCIAL BANK JSC
Unibank OJSC ('UB') is a private commercial bank with more than 30 years of history in Azerbaijan. UB is the Top 6th bank among 22 banks in Azerbaijan with the market share of 3.2% by assets and 4.5% by gross loans as of 1H 2024. The bank has 31 branches, and 180 ATMs.
EBRD Finance Summary
USD 10,000,000.00
USD 10,000,000
Total Project Cost
USD 10,000,000.00
USD 10,000,000
Additionality
Financing Structure
The operation will contribute to the strengthening of the bank's balance sheet via improving maturity structure of liabilities and will ensure availability of local currency to MSME clients.
Knowledge, innovation, and capacity building
A tailored TC for implementing the Environmental and Social Management System (ESMS), and increasing the capacity for MSME monitoring will improve UB's end-to-end lending process and experience sharing all along the credit cycle, including clients' assessment, underwriting, and monitoring stages, by considering environmental risks.
Environmental and Social Summary
Categorised FI (2019 ESP). Unibank is required to comply with the EBRD's PRs 2, 4 and 9, including the Exclusion and Referral lists introduced with the EBRD's E&S Policy 2019, align with the EBRD's E&S Risk Management guidance, and submit Annual E&S Reports to the Bank. Sub-borrowers financed through Unibank 's loan must comply with national environmental, health, safety, and labour requirements.
