The Baku office of global law firm Dentons – a TEAS member company – has advised the EIB on a €50m 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, particularly providing support to SMEs, development of 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 within 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 the IBA to execute, deliver and perform the financing contract, as well as the validity and enforceability thereof.

Timothy Stubbs, the Moscow-based partner, introduced the matter to Baku. Partner Kamal Mammadzada led Baku team with assistance from associate, Ulvia Zeynalova-Bockin and paralegal, Sabina Kerimova. For more information, go to