Bank Respublika signs largest credit agreement of $50 mln in the history of Azerbaijan's private banking sector

The signed agreement is also the first CLN (Credit Linked Notes) agreement in Azerbaijan. In the framework of this agreement RZB has also issued a loan to Bank Respublika in the amount of $50 mln, the notes were issued on these amount and sold to different investors.

With this successful operation Bank Republika started the use of capital markets for raising additional assets for strengthening of its positions on the market and supporting its growth strategy. It also allows the Bank to expand its resource basis, using funds of investors throughout Europe without blocking credit line from partner banks. The agreement is concluded for 3 years and the allocated funds will be used for credits to be issued to the bank's customers. The transaction was launched on June 25 and finished on July 2 after a serious of presentations (Road Show) held in Vienna, Frankfurt, Riga and London. Large financial indicators of the bank and its professional management were highly evaluated by investors, which caused successful debut on the capital markets. Geographic distribution of investors by the countries was as follows: Great Britain 52%, Austria 18, Baltic states 13, Russia 5 and other countries 12. AMONF investors the funds made 40%, banks 30%, companies on assets management 30%.
 
Bank Respublika is actively cooperating with RZB also on the trade financing program.

The total amount of agreements between Bank Respublica and international financial organization on different programs of crediting and trade financing exceeds $200 mln. Bank Respublika cooperates with such organizations as the European Bank for Reconstruction and Development, Asian Development Bank. International Financial Corporation,  Standard Bank Plc. (LOndon), Futch Financial Company FMO, German investment company DEG, Black Sea Trade and Development Bank, German-Azerbaijani Foundation, RZB, Sumitomo Mitsui Banking Corporation, Commerzbank AG, Drezdner Bank and others.

Bank Respublika has been functioning since 1992 and is among the leading banks of Azerbaijan. There are two biggest financial organizations of Germany among the bank's shareholders including DEG, member of the KfW banking group and SIDT, member of член Sparkassen-Finanzgruppe, with a package of bank's shares in the amount of 25%+1 stock.

Bank Respublika has a long-term rating of deposits in national and foreign currency on B2 with positive forecast from Moody's Investors Service. The bank's assets currently make AZN 370,200,000 and credit portfolio AZN 232,500,000, deposit portfolio- AZN 141,800,000. There are 28 affiliates of the bank in Baku and regions. 

/Day.Az/