Status: Approved investment
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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

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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 ~923 staff the bank operates a network of 27 branches. Total assets ~USD 576m, Equity ~USD 31m and RoE 5.7%. 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 ~14% youth unemployment rate. MSMEs are very important to the future Azerbaijan economy contributing currently ~4% of GDP whilst this needs to grow to ~15% in 2020 and 35% in 2025 according to the country's strategic road map. 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
7/7/2022 USD 20.00 MLN
5/7/2021 USD 5.00 MLN
11/26/2013 USD 13.70 MLN
Website customer/investment
Europe & Central Asia
Financial Institutions
Publication date
Effective date
Total FMO financing
USD 8.00 MLN
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)