Bank Respublika EFSE Funding and Investment Details

Bank Respublika received a significant investment of €7 million from the European Fund for Southeast Europe (EFSE). This funding enabled the bank to expand its operations and provide financial services to small and medium-sized enterprises (SMEs) in Azerbaijan.

The EFSE investment was used to support the bank's lending activities, particularly in the areas of agriculture and microfinance. By doing so, the bank aimed to promote economic growth and development in the country.

Bank Respublika's partnership with EFSE demonstrates the bank's commitment to supporting the local economy and improving the lives of its citizens.

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Bank Respublika offers a range of investment options, including deposits and loans.

The bank's deposits are insured by the Deposit Insurance Fund, which provides protection up to 50,000 AZN per depositor.

You can open a deposit account with as little as 100 AZN, and interest rates vary from 4.5% to 7% per annum.

The bank also offers loans for various purposes, including personal loans, mortgages, and business loans.

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Bank Respublika's shareholders are a diverse group, with a significant portion of the equity held by local investors.

Local shareholders own 75% of Bank Respublika's shares, making them a dominant force in the bank's ownership structure.

Investment Company DEG, a member of KfW banking group, acquired a significant stake in Bank Respublika, holding 16.7% of the shares.

Sparkassen International Development Trust, a member of financial group Sparkassen-Finanzgruppe, also invested in Bank Respublika, holding 8.3% of the shares.

Here's a breakdown of Bank Respublika's shareholder equity:

FMO has made significant investments in Bank Respublika, totaling USD 57.70 million.

One notable investment was made on September 5, 2024, with a loan of USD 15.00 million.

This investment demonstrates FMO's commitment to supporting the bank's growth in the SME and retail segment.

On July 7, 2022, FMO provided a loan of USD 20.00 million to Bank Respublika.

This investment highlights the bank's expansion of financial activities in Azerbaijan to the non-oil sector.

Here is a breakdown of the total FMO financing to Bank Respublika:

The most recent investment was made on October 24, 2024, with a loan of USD 13.70 million.

EFSE provided USD 21 million in local currency to Bank Respublika to strengthen micro, small, and medium enterprises (MSMEs) in Azerbaijan.

This loan has a four-year maturity and will be used to drive economic activity and regional growth across the country.

The financing aims to prioritize entrepreneurs in regional areas, with Bank Respublika's broad branch network playing a crucial role in channeling these funds to businesses.

Bank Respublika's Chairman of the Management Board, Tariyel Ismayilov, expressed gratitude to EFSE for their cooperation and confidence in the bank's reliability.

The secured funds will enable Bank Respublika to enhance credit support for small and medium businesses, contributing to the country's economic development.

Our funding objective is to support the growth of SMEs and retail activities in emerging markets through EFSE funding.

FMO, a leading development bank, has provided a subordinated loan to Bank Respublika, which is included in the bank's Tier 2 capital.

The loan enables further growth of Bank Respublika's activities in the SME and retail segment, helping to expand financial services to underserved populations.

By providing a loan to Bank Respublika, FMO supports the expansion of financial activities in Azerbaijan to the non-oil sector, addressing the country's low deposits and credit relative to its economy.

A high proportion of Azerbaijan's population still doesn't use banking services, making it essential to provide financial support to institutions like Bank Respublika.

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EFSE has entered into a significant loan agreement with Bank Respublika, a prominent financial institution in Azerbaijan, providing USD 21 million in Azerbaijani manats.

This loan has a four-year maturity, aiming to strengthen micro, small, and medium enterprises (MSMEs), particularly entrepreneurs in regional areas.

Bank Respublika's broad branch network will play a crucial role in channeling these funds to businesses across the country, driving economic activity and regional growth.

The secured funds will enable Bank Respublika to enhance credit support for small and medium businesses, contributing to the country's economic development.

Tariyel Ismayilov, Chairman of the Management Board of Bank Respublika, expressed gratitude towards EFSE for their cooperation and confidence in the country's banking system.

Andrea Hagmann, Chairperson of EFSE's Board of Directors, confirmed that the new loan in Azerbaijani manats underscores the relevance of local currency financing, enabling businesses to grow sustainably while being protected from foreign exchange risks.

Bank Respublika is a leading financial institution in Azerbaijan, with a rich history dating back to 1992. The bank has undergone significant transformations over the years to become a modern and reliable partner for its clients.

The bank's headquarters is located in Baku, Azerbaijan's capital city. Bank Respublika has a strong presence in the country, with a network of branches and ATMs that provide convenient access to financial services.

Bank Respublika is committed to providing high-quality banking services to its clients, with a focus on customer satisfaction and security.

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Our customer is Bank Respublika, the ninth largest bank in Azerbaijan with a market share of 2.3% of total assets.

They position themselves as a bank for the middle class and have been an existing client of FMO since 2006.

Bank Respublika focuses on small- and medium-sized enterprises (SMEs) and retail clients.

They offer a wide range of banking services and operate through 33 branches throughout the country.

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Ojscs are state-owned companies that operate in strategic sectors such as energy, transportation, and defense.

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One notable example of an Ojsc is Rosneft, which is Russia's largest oil producer.