Azerbaijan, Baku, July 7 / Trend N. Ismayilova /
The European Bank for Reconstruction and Development (EBRD) and Azerbaijani Unibank will sign the agreement on granting financial package in the amount of $83 million in the form of converted bonds and main debt to Azerbaijani bank on July 7, UniBank said on July 7. EBRD authorized head of representation Francis Delaeyfor signing loan agreement, EBRD representation in Baku said.
EBRD will finance together with DEG German Investment Corporation - Deutsche Investitions- und Entwicklungsgesellschaft mbH, financial development company of Netherlands (FMO) and Austrian Development Bank OeEB.
Financing will support one of leading independent commercial banks of Azerbaijan, strengthen its capital basis and loan capacity in real sector of economy.
Total cost of the project hits $37 million. It is formed of main debt in the amount of $18.5 million (the rest $32.5 million will be financed by DEG, FMO and OeEB; converted bond in the amount of $17.5 million (the rest $7.5 million will be financed by DEG), as well as investments in own capital (joint stock investment) of the bank in the amount of $1.1 million.
EBRD and DEG have package of Unibank shares in the amount of 15.2 percent and 8.3 percent accordingly. But they are entitled to leave staff of Azerbaijani bank share holders from 2008 upon signed agreement. But this issue remains open.
Decision about investments of foreign share holders in capital of UniBank is connected with announcement of authorized capital of the bank in the amount of 30 million manat late 2008.
Capital of the bank was fully paid.
Increasing of authorized capital expands financial potentialities of UniBank. Growth of capital promotes increasing of loan portfolio, as well as maximal amount of loan for a borrower.
Moreover, increasing of capital is additional stimulus for growth of assets and total volume of drawn loan resources.
As a result of the first quarter, assets of UniBank hit 374.18 million manat or 10.4 percent less than similar period of 2008.
Deposit portfolio of the bank reduced 29 percent to 89.35 million manat, loan portfolio - 7.3 percent to 286.68 million manat.
Joint capital of UniBank increased 29.5 percent and hit 68.9 million manat.
Summary profit of the bank reduced 12.3 percent and hit 28.83 million manat. But expenses increased 8.9 percent up to 26.37 million manat. As a result profit of the bank reduced 33 percent per year by hitting 2.46 milion manat, net profit - 32.6 percent up to 1.92 million manat.
UniBank has been conducted its activity since 1992. Besides the European Bank for Reconstruction and Development and DEG, founders of UniBank include legal entities (with market share of 0.9 percent) and physical entities (75.62 percent).
On July 7, the official exchange rate is 0.8042 manat to $1.
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