Bank Respublika OJSC
Status: Investment in contracting phaseWhy disclosure?
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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 prospective 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 want to fund this investment?
Bank Respublika will use the USD 40mln new facility to finance eligible Green projects. Climate action initiatives are becoming a more prominent part of the Government of Azerbaijan’s plans to shape a sustainable future. Bank Respublika wants to contribute to this plan as a key player in the country's financial sector. FMO supports the bank with this strategic choice, as it is fully aligned with FMO’s own sustainable finance goals. The total USD 40 million transaction refers to a committed tranche of USD 15 million and an uncommitted tranche of USD 25 million.
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 |
|---|---|
| 7/7/2022 | USD 20.00 MLN |
| 5/7/2021 | USD 5.00 MLN |
| 6/28/2022 | USD 8.00 MLN |
| 11/26/2013 | USD 13.70 MLN |
| 3/17/2024 | USD 25.00 MLN |
- Website customer/investment
- https://www.bankrespublika.az/
- Region
- Europe & Central Asia
- Country
- Azerbaijan
- Sector
- Financial Institutions
- Publication date
- 2/21/2024
- Deadline for feedback
- 3/22/2024
- Total FMO financing
- USD 15.00 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