According to the agreement, the international financial institution will provide Bank Respublika with a loan in Azerbaijani manats (AZN) equivalent to €15 million for a term of three years, with 30% of the total financing allocated to support women entrepreneurs. The deal is the first synthetic local currency loan in Finnfund's history.
The borrowed funds will be directed to support Bank Respublika's priority areas, including micro, small and medium-sized enterprises (MSMEs), green project financing, and expanding access to financial resources for women entrepreneurs in Azerbaijan.
The signing of this agreement marks another important step in strengthening Bank Respublika's international cooperation and confirms the high level of trust foreign financial institutions place in Azerbaijan's banking sector and the bank itself.
Finnfund Senior Investment Manager Ulla-Maija Rantapuska noted: "This investment combines three critical areas: climate change mitigation, gender equality, and financial inclusion. By providing local currency financing to Bank Respublika — one of the region's leading banks in green lending and MSME financing — we are expanding access to financial resources. In doing so, we also contribute to the development of a more sustainable and diversified economy in Azerbaijan."
Chairman of the Board of Bank Respublika Tariyel Ismayilov stated: "We highly value the start of cooperation with Finnfund and view the signing of this agreement as another important step in strengthening collaboration with international financial institutions. The support from one of Finland's leading development institutions is a recognition of Bank Respublika's resilience, the effectiveness of our business model, and our commitment to responsible financing principles. The funds raised will allow us to expand support for entrepreneurs and projects that contribute to the sustainable development of Azerbaijan's economy."