In September 2011, the Netherlands Development Finance Company (FMO) arranged a USD 25 million loan to Azerbaijan’s oldest bank DemirBank. OeEB contributed USD 7.5 million.
|Project name||DemirBank Azerbaijan|
|Sector||Financial sector / Microfinance / SME|
|OeEB project volume||USD 7.5 million|
|Projekt partner(s)||FMO, DemirBank, Raiffeisen Bank International (RBI)|
USD 12.5 million is provided by FMO, USD 7.5 million by the Development Bank of Austria (OeEB) and further loans amounting to a total of USD 5 million are syndicated to three commercial financial institutions, amongst others to Raiffeisen Bank International (RBI).
A relevant feature of this transaction is its maturity. The loan with a tenor of five years will help DemirBank to enhance its lending activity to micro, small and medium-sized businesses in Azerbaijan, especially in rural areas of the country.