IFC Investment in Azerdemiryolbank to Promote Housing Finance in Azerbaijan
In Washington, D.C.:
Thoko Moyo
Phone: + (202) 458-8517
E-mail: tmoyo@ifc.org
Baku, Azerbaijan, August 19, 2008—IFC,
a member of the World Bank Group, has signed an agreement with Azerdemiryolbank
to help expand the bank’s mortgage operations in Azerbaijan. The initiative
is part of IFC’s Azerbaijan Housing Program, which helps facilitate development
of the country’s mortgage sector and increase home buyers’ access to
funding.
Through the program, IFC is providing
long-term mortgage facilities to selected commercial banks, as well as
advisory services to participating banks and other key market players.
The $5 million loan to Azerdemiryolbank is the first transaction in IFC’s
total funding package of up to $15 million, which also includes a leasing
loan and a trade finance line of credit.
This project promotes the development
of Azerbaijan’s primary mortgage market by providing long-term funding
to the banking system and raising mortgage-underwriting standards in accordance
with the best practices.
Roman Amirjanov, Chairman of the Executive
Board of Azerdemiryolbank, said, “Partnering with IFC will help Azerdemiryolbank
introduce new banking products to local small businesses and the mortgage
market. Looking forward, we also plan to expand cooperation with IFC in
the leasing and trade finance sectors.”
“Affordable housing finance creates
opportunities for more people to own a home,” said Lars Thunell, IFC Executive
Vice President and CEO. “IFC is pleased to continue supporting the development
of Azerbaijan’s mortgage sector.”
About IFC
IFC, a member of the World Bank Group,
fosters sustainable economic growth in developing countries by financing
private sector investment, mobilizing private capital in local and international
financial markets, and providing advisory and risk mitigation services
to businesses and governments. IFC’s vision is that poor people should
have the opportunity to escape poverty and improve their lives. In FY07,
IFC committed $8.2 billion and mobilized an additional $3.9 billion through
syndications and structured finance for 299 investments in 69 developing
countries. IFC also provided advisory services in 97 countries. For more
information, visit www.ifc.org.
About Azerdemiryolbank
Founded in 1989, Azerdemiryolbank is
one of the oldest privately owned banks in Azerbaijan. The bank’s shareholders
include the European Bank for Reconstruction and Development and the Netherlands
Development Finance Company (FMO). It is in the top 10 banks of Azerbaijan,
with assets exceeding $256 million and total equity of $42 million as of
August 2008. With an expanding branch network, the bank serves small businesses,
midsize companies, and individual customers, reaching people in the country’s
underserved regions. For more information, visit www.azerdemiryolbank.com.
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