Azerbaijan’s Rabitabank and Unibank have made a joint decision to issue syndicated loans, the Unibank said in a statement on September 4.
The message said a “Protocol of intent”, implying the issuance of joint syndicated loans, was signed between the banks.
The syndicated loans are usually issued to business customers by two or more banks. As a result of this cooperation, both banks will be able to meet the needs of their business customers in large volumes. This also provides an opportunity for customers to implement larger and longer-term development plans.
Another purpose of such loans is to distribute the risks of the loan amount between the participating banks.
According to the message, there is great need for syndicated loans to meet the needs of business owners in large amounts of loans. From this point of view, cooperation between Unibank and Rabitabank in this direction will be very useful both for business owners and for the banking sector.
Faig Huseynov, Chairman of the Board of Unibank, highly appreciated this cooperation.
“It is a pleasure to be on the list of the first banks in our country that practice this, which is widely used on the global banking market. This cooperation will allow us to co-finance larger business projects and meet the demand for big money that business needs. I believe that the support of major business projects by Unibank and Rabitabank – two banks that have extensive experience in the banking sector of independent Azerbaijan – will create new trends in the banking sector,” he said.
Chairman of the Board of Directors of Rabitabank Elchin Gadimov also believes that the syndicated loans, which provide an opportunity to distribute credit risks between partner banks when issuing large loans, will be more useful to support large businesses.
“This cooperation between the two banks of Azerbaijan, with rich banking experience, will make financial resources more accessible to businesses. The syndicated loan will not only help the entrepreneur to increase the probability of implementation of large projects, but will also contribute to the overall growth of the economy and employment in the country,” he said.
Established in 1993, Rabitabank expanded its activities beyond the communications industry, reaching customers from various sectors of the economy, becoming a universal bank. Currently, the clients of Rabitabank are companies operating in the field of trade, production, construction, agriculture, transport, communications and other sectors of the economy, the bank also provides a full range of financial services to individuals.
In 25 years the bank has been able not only to maintain its position among the largest banks of the country, but also to expand its activities through 23 branches and two offices across the country, strengthen the Bank’s presence in the regions through 14 regional branches (in Sumgait, Guba, Gusar, Khachmaz, Lankaran, Ganja, Shamkir, Shirvan, Sheki, Nakhchivan, Shamakhi, Kurdamir, Agsu, Agjabedi and Masalli), to expand cooperation with international financial institutions, to attract new customers to the bank, thereby laying a solid foundation for further successful development.
Unibank created through the merger of two leading commercial banks, “Mbank” (1992) and “Promtexbank” (1994), in 2002, is one of the largest financial organizations in the country.
According to its financial indicators, Unibank holds a leading position in the list of banks in the country. Unibank provides services to various clients, both corporate and private. The list of shareholders of the bank includes such a large global financial institution as the European Bank for Development and Reconstruction.
To provide high-quality services, the bank has a wide branch network, both in the regions and in the capital. In more than 25 years of its successful commercial activity and participation in many social projects, the bank has won many international and local awards. (Trend/Business World Magazine)