Finance

Finance

Azerbaijan, BNP Paribas sign loan agreement

09 December 2009 16:41 (UTC +04:00)

Baku. Rashad Suleymanov - APA-ECONOMICS. Azerbaijanâ€™s Ministry of Transport signed Tuesday a loan agreement with BNP Paribas with insurance provided by Israelâ€™s export credit insurance agency ASHRA.

On the Azerbaijani side the agreement was signed by Minister of Transport Ziya Mammadov and Finance Minister Samir Sharifov.

The agreement provides a loan of $270 million for the reconstruction of Mughanli-Yevlakh section (156 km) of Baku-Shamakhi-Yevlakh Motorway (M4 280 km).

The loan has a maturity period of 14 years with 4-year grace term. The loan will be repaid within ten years in 20 equal instalments every 6 months with beginning 6 months after the last delivery of loan funds. Repayment instalments shall be made on June 15 or December 15 each year.

Interest rate is LIBOR (U.S. dollars) + margin of 3.5% per annum.

Under the agreement, 70% ($189 million) of the loan will provided by BNP Paribas, 15% ($40.5 million) by Bank Leumi Le Israel B.M and 15% ($40.5 million) by Bank Hapoalim B.M.