Baku, Azerbaijan, June 10, 2013—IFC,
a member of the World Bank Group, with the support of the Government of
Canada, is helping Bank Respublika expand its lending to small and medium
enterprises (SMEs), boost the sustainable energy sector, and create jobs
IFC will provide Bank Respublika
with a loan of $15 million, to expand its lending to SMEs involved in sustainable
energy in Azerbaijan, help create jobs, and support economic development.
The loan includes $1 million from the IFC-Canada Climate Change Program.
This is IFC’s first sustainable energy investment in Azerbaijan, which
is expected to encourage private sector investment in renewable energy
and energy efficiency projects.
“IFC’s support will enable
us to expand existing products and offer new ones to our clients,” said
Chairperson of the Executive Board of Bank Respublika, Khadija Hasanova.
“We plan to increase financing of SMEs, including those who are willing
to upgrade to more efficient equipment but have limited resources.”
The investment is possible thanks
to the Government of Canada's instrumental contribution, which has helped
to make the package viable.
“Through this project, the Government
of Canada is helping leverage private sector investments aimed at advancing
sustainable energy projects that reduce greenhouse gas emissions,” said
Canada’s Environment Minister, the Hon. Peter Kent.
Thomas Lubeck, IFC Regional Manager
for the South Caucasus, said: “This transaction, designed to help smaller
enterprises get better access to finance, is part of IFC’s strategy in
Azerbaijan to support growth in the non-oil sector. The financing
is also expected to send a positive signal to other commercial lenders,
attracting investors to sustainable energy finance in Azerbaijan.”
Azerbaijan became a member of
IFC in 1995. Since then IFC has invested almost $393 million and mobilized
nearly $73 million from other lenders in 67 projects in financial services,
infrastructure, and manufacturing. IFC has also implemented advisory projects
focused on private sector development. In addition, the State Oil Fund
of the Republic of Azerbaijan has committed $350 million to three funds
managed by IFC Asset Management Company, which invests alongside IFC in
private sector projects in emerging markets.
About the IFC-Canada Climate
The IFC-Canada Climate Change Program promotes private sector financing
for clean energy projects. Canada’s financing to IFC for this program
is part of its overall fast-start financing contribution for 2010–2011.
Under the Copenhagen Accord, developed countries committed to provide fast-start
financing of almost $30 billion for 2010–2012 to support climate-change
mitigation and adaptation in developing countries. As part of Canada’s
commitment to support climate change action in developing countries, Canada
is contributing $1.2 billion Canadian dollars in new and additional climate-change
financing over three years (fiscals 2010–2013).
IFC, a member of the World Bank Group, is the largest global development
institution focused exclusively on the private sector. We help developing
countries achieve sustainable growth by financing investment, mobilizing
capital in international financial markets, and providing advisory services
to businesses and governments. In FY12, our investments reached an all-time
high of more than $20 billion, leveraging the power of the private sector
to create jobs, spark innovation, and tackle the world’s most pressing
development challenges. For more information, visit www.ifc.org.
For more information about
Bank Respublika, visit: www.bankrespublika.az/