OJSC BANK RESPUBLIKA
Status: Approved investmentWhy disclosure?
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In case of questions
In case of questions, please contact us at disclosure@fmo.nl
Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
Bank Respublika is a mid-sized bank in Azerbaijan focusing on Micro, SME and Retail customers. With ~1,300 staff the bank operates a network of 27 branches. Total assets ~USD 720m, Equity ~USD 54m and RoA 1.8%. The bank is an existing client of FMO since 2006.
What is our funding objective?
To provide stable medium term funding in local currency to finance the bank's loan portfolio and improve the balance sheet structure of the bank.
Why do we fund this investment?
This transaction fully supports FMO’s strategic aim to reduce inequalities. The funds will be used to finance a combination of Micro clients and women/youth/agricultural SME clients of the bank. In turn, this supports job creation and maintenance in a country with >15% youth unemployment rate (WB, 2020 data). MSMEs are very important for the economic value-add of Azerbaijan contributing only 13.4% whilst they give employment to 42.9% of total workforce (2018 data). This compares to 60% and 60-70% respectively for OECD countries, illustrating the enormous upside potential for the Azerbaijan MSME segment. Access to credit remains critical for further development of the MSME segment.
What is the Environmental and Social categorization rationale?
The project has been categorised as Category C in accordance with FMO’s Sustainability Policy. The Project’s activities are deemed to have minimal or no adverse environmental and social risks and/or impacts. As part of the Project, the Bank will be required to apply the EDFI Exclusion List and (Country) E&S laws and regulations.
More investments
| Date | Total FMO financing |
|---|---|
| 9/5/2024 | USD 15.00 MLN |
| 4/23/2024 | USD 25.00 MLN |
| 5/24/2024 | USD 5.00 MLN |
| 6/28/2022 | USD 8.00 MLN |
| 10/24/2024 | USD 13.70 MLN |
- Website customer/investment
- https://www.bankrespublika.az/
- Region
- Europe & Central Asia
- Country
- Azerbaijan
- Sector
- Financial Institutions
- Publication date
- 6/2/2022
- Effective date
- 7/7/2022
- Total FMO financing
- USD 20.00 MLN
- Funding
- FMO NV
-
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - C