Bank Respublika OJSC

In brief

Finnfund is investing EUR 15 million equivalent in Azerbaijani manat in Bank Respublika, Azerbaijan's largest privately owned bank. The senior unsecured loan will support the growth of Bank Respublika’s green financing and lending to micro, small and medium-sized enterprises (MSMEs). 30% of the total financing will be directed to women, making the investment aligned with the 2X Challenge on gender equality. This investment also marks a milestone for Finnfund as its first synthetic local currency loan, demonstrating the organisation’s commitment to deploy value adding financial solutions in emerging markets. Bank Respublika is a systemically important financial institution and the fifth-largest bank in Azerbaijan, with a strong focus on retail, micro and SME clients. Its loan portfolio is well diversified and notably excludes exposure to the oil and gas sector. Bank Respublika has an established track record of profitability and strong asset quality, as well as partnerships with several international financial institutions. The new financing will further strengthen its capacity to expand lending to priority segments and scale up green finance.

Main development impact

Investment details

Please note, that in principle, this information is given at the time of signature according to Finnfund's disclosure policy. However, in the case of investment funds, the share of Finnfund’s financing (%) is disclosed after the fund’s final closing, and information on the portfolio companies financed by the fund is updated at least once a year.