History

Due to establishment of independent national bank system development of telecommunication system and in compliance with the formation of money operations of people in Azerbaijan Republic the importance of rendering new banking services to communication system appeared as a result of it in 1993 Rabitabank Joint Stock Commercial Bank was established. Main activity of the bank comprises credits in foreign and local currencies. Holding trade and non trade operations. As a universal bank Rabitabank renders services to communication, dissemination of press, building construction, insurance, trade, industry and other fields of economy. Nowadays 12 branches of the bank are operating (they are in Baku, Nakhchivan, Sumgait, Lankaran, Guba e.t.c). Taking into account the development strategy of Rabitabank JSCB opening of branches in all regions of the Republic in future is considered. The Guba branch begun its activity on January on July 30, 2003.

Description

Rabitabank is a medium-sized commercial bank focused on providing financing to micro, small and medium enterprises (MSMEs) in Azerbaijan. Rabitabank had equity of $9 mln and total assets of $43 mln as of the end-June 2006. Rabitabank was established by public sector companies controlled by the Ministry of Communications in order to provide new banking services to communications sector companies. Since then the Bank was privatized and currently 97% privately owned. Since its formation, Rabitabank managed to expand to 12 branches throughout Azerbaijan, diversify its client base beyond what originally used to be a mainly communications sector niche. Today the Bank provides a full range of banking services, including corporate banking, retail banking and trade finance. However, the primary focus of the Bank from the outset has always been MSMEs and the Bank has identified the MSME sector as their primary target market in their long-term strategy. The Bank became IFC’s client in 1998 after receiving the first $400 thousand credit line fully repaid by now. Subsequently Rabitabank received the second $1.2 million credit line in 2003 with currently outstanding amount of $900 thousand. The previous loans and technical assistance provided as an integral part of the investments helped the Bank to grow its balance sheet and become a profitable medium-sized bank focused on the MSME sector. In order to grow further, the Bank approached IFC with a request to provide a new loan in order to expand further its lending to MSMEs. IFC is considering a new credit line Loan to Rabitabank up to $2 million with a convertible option. The long term funding would allow the Bank to strengthen its balance sheet in view of the expected expansion and increased demand for funding from MSMEs, entrepreneurs and individuals. The investment will be accompanied by targeted technical assistance to contribute to the institutional capacity building of the Bank and improve such areas as Risk Management, Strategic Planning, and MIS.

Address

14 H.Huseynov Str.
Guba, Azerbaijan
Phone:(994 169) 5-21-81