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UniBank gets a credit line for mortgage loans

06 October 2008 13:54 (UTC +04:00)

Baku. Nijat Mustafayev â€“ APA-Economics. Unibank CB and the Netherlandsâ€™ financial company FMO (Nederlandse Financierings-Maatschappij Voor Ontwikkelingslanden N.V.) have signed a credit line agreement for $15 mn to finance mortgage projects.
The proceeds of the credit line will be used to finance the projects concerned with purchase, modernisation, repairs or construction of mortgage objects, as well as to re-finance mortgage credits.
â€˜It is especially important to us that the trust that the overseas investors have in our Bank remains solid even at the time of the global financial crisis,â€™ comments Faig Huseynov, Chairman of the Management Board of Unibank, â€˜Unibank was in receipt of two new credit lines for development of the mortgage business in only a few months past, one being from the International Finance Corporation and the other one from FMO. Both credit lines come under the conditions that are beneficial to the creditors as well as to our Bank. This enables us to put reasonable interest rates on the credits that we give to our customers.â€™
The mortgage finance credit line from FMO will be assimilated in two equal tranches equalling $7.5 mn.
It should be mentioned that Unibank twice borrowed credit lines from FMO before. On 11 December 2006, Unibank and FMO signed a credit line agreement for $5 mn to finance SME projects, and on 13 December the same year Unibank became the first recipient of a subordinated credit (from FMO) in the history of the banking system of Azerbaijan. The subordinated credit equalling $5 mn provided an added source to rely upon to form the 2nd tier capital of Unibank.
Also, FMO awarded Unibank the $1.5 mn limit pertaining to trade finance projects.
UniBank is owned by the EBRD (15.15%), DEG Investment Corporation (8.33%), legal entities (0.9%) and individuals (75.62%).