Bank Respublika and FMO sign a USD 20 mln loan agreement to support the MSME sector in Azerbaijan

Business

11:08 | 24.08.2022

Bank Respublika and FMO sign a USD 20 mln loan agreement to support the MSME sector in Azerbaijan

"Bank Respublika" OSJC and FMO, the Dutch Entrepreneurial Development Bank announced the signing of an additional major loan agreement. This follows on the extended partnership between these two institutions which began in 2006.

The two institutions signed Bank Respublika’s largest loan agreement of recent years, with the aim of reducing inequalities and supporting (M)SME clients. Per the terms of the loan facility, FMO is providing financing in the amount of USD 20 million equivalent in local currency. The funds will be directed to support local micro, small and medium-sized enterprises (SMEs) engaged in agricultural sector as well as young entrepreneurs and women entrepreneurs.

Bank Respublika, which is currently expanding its regional service network, plans to use the new loan to increase the availability of large credit funds for entrepreneurs working in the regions and particularly in rural areas. The funds will also provide stable medium-term funding in local currency to finance the bank's loan portfolio and improve the balance sheet structure of the bank.

"We are proud that FMO, one of the largest development financial institutions in Europe, has been one of stable and reliable financial partners of our bank for more than 16 years. I am sure that the funds that we have attracted during these years, as well as our today's agreement - in the amount of USD 20 million, will provide substantial support not only to the development of the bank's business portfolio, but also to the real sector of the country in total; including a positive impact on the rate of job creation in the country”, said Tariyel Ismayılov, Chairman of the Execution Board of Bank Respublika OJSC.

"We are pleased to support our longstanding partner Bank Respublika once again with this latest high-impact transaction. The transaction will be fully used to finance micro-enterprises, youth- and women-owned SMEs, and agri SMEs, which therefore allows it to qualify 100% for our strategic aim of Reducing Inequalities. Additionally, this transaction qualifies for SDG 5 for Gender Equality and SDG 8 for creating and maintaining jobs throughout Azerbaijan, further underscoring the impact of this loan. We look forward to our continued partnership with Bank Respublika,” said Huib-Jan de Ruijter, Chief Investment Officer at FMO.

Through this latest debt facility provided by FMO, Bank Respublika is shown to be one of the leading and trustworthy banks in Azerbaijan able to achieve long-term, sustainable growth, all while supporting underserved entrepreneurs across the country.