Bank Respublika OJSC
Status: Approved investmentWhy disclosure?
FMO is committed to making publicly available relevant investment information that informs stakeholders and enables them to engage directly with FMO on its investments which, in turn, enhances our investment decisions, the design and implementation of projects and policies, and strengthens development outcomes. Learn more
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 around 1,475 staff members the bank operates a network of 32 branches. Total assets amount to USD 1.1 billion and Total Capital is about USD 88 million. The bank is an existing client of FMO since 2006.
What is our funding objective?
The objective of the loan is 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 is 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 a youth unemployment rate of approximately 13.4%, which exceeds the 5.5% worldwide unemployment rate (WB, 2022 data). Micro, small and medium enterprises (MSMEs) are very important for the economic value added of Azerbaijan. Around 99% of the registered businesses are MSMEs, contributing to 26.6% of the country's non-oil GDP (versus approximately 55% for OECD countries). MSMEs count for 42% of the country's employment, versus 60-70% 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 in Azerbaijan.
What is the Environmental and Social categorization rationale?
The project has E&S risk 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 the local E&S laws and regulations.
More investments
| Date | Total FMO financing |
|---|---|
| 9/5/2024 | USD 15.00 MLN |
| 7/7/2022 | USD 20.00 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
- 2/16/2024
- Effective date
- 4/23/2024
- Total FMO financing
- USD 25.00 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