Dentons’ Baku office advised EIB on a €50 million loan to the International Bank of Azerbaijan (IBA), the largest bank in Azerbaijan, to finance projects promoted by SMEs and midcaps. The loan corresponds to the objectives of the EIB’s mandate for lending outside the EU, which focuses on the development of the local private sector, in particular support to SMEs, social and economic infrastructure and climate change mitigation and adaptation.

The framework agreement between the Republic of Azerbaijan and the EIB entered into force on 15 January 2014, enabling the EIB to commence lending operations in the country. The IBA transaction involved only the second loan by the EIB within Azerbaijan. Dentons’ role was to advise on matters of Azerbaijani law concerning the execution of the financing documents and the issuance of an Azerbaijani legal opinion on the capacity and authority of IBA to execute, deliver and perform the financing contract, as well as the validity and enforceability thereof.

The matter was introduced to Baku by Moscow-based partner, Timothy Stubbs. The team in Baku was led by Partner Kamal Mammadzada with the assistance from Associate, Ulvia Zeynalova-Bockin, and Paralegal, Sabina Kerimova.