International relations

TuranBank every year is further expanding its international contacts and collaboration, succeeding in a number of undertakings. The Bank successfully managed to build on collaboratory relations within the framework of attracting international credit lines within micro, as well as Small and Medium Enterprise (SME) financing programs, organizing Islamic banking in the country, establishing correspondent relations with foreign banks, international and interbank payment systems and express money tranfer systems. Cooperation with international financial institutions has clearly been instrumental in establishing a positive and reliable partner relations with both foreign and domestic counterparties. It was this reliable partner image that helped the Bank meet one of its major 2012-2015 Strategic Plan goals of attracting foreign investments to the Bank. Thus, a US-managed ShoreCap II Ltd. Fund became the Bank’s shareholders having acquired a 7.45% holding in the Bank’s equity through a purchase of 3028 shares. ShoreCap II Ltd. is an international private equity fund. The fund is intrested in making equity investments in small banks and regulated microfinance institutions catering to business customers in emerging and transition economies. ShoreCap II Ltd. formulated an equity of USD 80 million in order to support the development of financial institutions in Asia and Africa. The core objective of the fund is to ensure that equity is used in line with social responsibility through equity investments designed to foster the development of financial institutions serving micro and small enterprises in emerging and transition economies.

The Bank successfully continued the existing international cooperation projects under the international relations development strategy in the reported year and gained some positive accomplishments in terms of realizing new collaboratory arrangements. To verify this, it is enough to take a look at our list of international organizations which with our bank established a cooperation the currenty year:

  • Bank signed a loan agreement with WorldBusinessCapital, Inc. (WBC) in an additional amount of $ 7 million for a period of 7 years for SME financing;
  • The Black Sea Trade and Development Bank (BSTDB) increased the revolving Trade Finance facility provided to TuranBank to a total of $ 14 million;
  • TuranBank has attracted $3,5 million from Bank im Bistum Essen eG;
  • TuranBank signed a loan agreement with the Islamic Corporation for the Development of the Private Sector (ICD) in the amount of 5 million USD for 5 years for the purpose of small and medium business financing;
  • TuranBank joined a money transfer system "Leader" whichc operates in the CIS and Baltic countries, as well as in several other countries, including U.S.A, UK, Switzerland, Portugal, Turkey, Israel and China.

In 2013 Bank also successfully managed to build on collaboratory relations and implement some projets with foreign partners. Thus, our Bank signed an agreement with one of the world’s leading banking institutions, Societe Generale, for raising an additional USD 1 million of funding. These funds were channeled to micro and SME loans.  

The Bank took an active part in various international conferences in 2013. Thus, the Bank’s delegation, just like in previous years, attended the European Reconstruction and Development Bank’s (EBRD) annual congress in Istanbul, Turkey; Microfinance Centre’s annual convention in Budva, Montenegro; Islamic Development Bank’s (IDB) conference in Dushanbe; EFSE’s annual convention in Sarayevo, Bosnia and Hertzegovina; CIS Bank Forum’s annual meeting in Moscow, Russia. Besides the aforementioned events, the Bank’s representatives also attended the IFC’s Climate Investments congress in Istanbul and SME conference in Dubai. Furthermore, a an employee of the Bank represented TuranBank at the 20th International Islamic Banking Conference held in Bahrein as part of the Islamic banking initiative.

 

SME and Trade Finance

Foremost of these projects is initial agreement on 7 year long SME financing project of the Bank with WBC/OPIC for a total amount of USD 7 million. Another accomplishment was an agreement between the Bank and the Islamic Development Bank’s subsidiary Islamic Corporation for the Development of the Private Sector (ICD) for SME financing, with a 5 year term for USD 5 million.

Trade finance is considered an area of particular significance among banking products. The Bank views SME support a priority area in this regard. In the reported year the Bank continued to provide financing to this area using lines of credit provided by international financial institutions, and had some quite productive negotiations for accessing additional resources. Thus, in 2014 the Bank pays greater attention to trade financing through international cooperation. The Bank also expanded its collaboration with the Black Sea Trade and Development Bank on trade finance.  BSTDB has recently increased the revolving Trade Finance facility provided to TuranBank to a total of $ 14 million

 

Islamic Banking

In parellel to traditional banking, TuranBank has been actively promoting Islamic banking in the country’s financial sector and cooperating with the Islamic Corporation for the Development of the Private Sector (ICD, Islamic Development Bank Group) for Islamic Financing and with the International Islamic Trade Finance Corporation (ITFC, Islamic Development Bank Group). Using the aforementioned international financial institutions’ financing lines, the Bank offers a range of Islamic Banking Products such as Murabaha (Re-Sale), Wakala, two-phase Murabaha and Lease. The Bank has so far received a total of USD 13.8 million of Islamic finance allocations from the IDB.

The Bank also carries on with its efforts aimed at establishing an Islamic Banking window by 2015 that will allow us to offer a broad range of retail Islamic banking products at the marketplace in addition to one of its primary 2012-2015 Strategic Plan goals of Small and Medium Enterprise financing.

2014 

  • Bank signed a loan agreement with WorldBusinessCapital, Inc. (WBC) in an additional amount of $ 7 million for a period of 7 years for SME financing. A new shareholder of TuranBank is investments in regulated banks, microfinance institutions and nonbank financial institutions in developing countries in Asia and Africa;
  • The Black Sea Trade and Development Bank (BSTDB) increased the revolving Trade Finance facility provided to TuranBank to a total of $ 14 million;
  • TuranBank has attracted $3,5 million from Bank im Bistum Essen eG;
  • The Bank and the ECO Trade and Development Bank reached a preliminary agreement on a loan in the amount of $ 3 million for the financing of small and medium enterprises;
  • TuranBank signed a loan agreement with the Islamic Corporation for the Development of the Private Sector (ICD) in the amount of 5 million USD for 5 years for the purpose of small and medium business financing;
  • TuranBank joined a money transfer system "Leader" whichc operates in the CIS and Baltic countries, as well as in several other countries, including U.S.A, UK, Switzerland, Portugal, Turkey, Israel and China.

2013

  • Managed from the United States States ShoreCap II Ltd. Fund became a new shareholder of the bank;
  • The Bank continued cooperation with IFC within the project "Banking for small and medium enterprises";
  • The Bank has continued to collaborate with USAID (United States Agency for International Development) under the project "Development in Azerbaijan Competitiveness and Trade";
  • The Bank has signed an agreement with Societte-Generale Bank to allocate $ 1 million;
  • The Bank has signed an agreement with the IFC for financing a trade within a joint project for technical support;

2012

  • The Bank continued cooperation with IFC within the project "Banking for small and medium enterprises";
  • The Bank has continued to collaborate with USAID ( United States Agency for International Development ) under the project "Development Competitiveness and Trade in Azerbaijan";
  • The Bank within a joint project on the technical support with the American organization FSVC ( Volunteer Corps Financial Services ) sent four employees from middle management to training in three U.S. banks;
  • The Bank has joined the project of USAID "Agricultural Credit Guarantee in Azerbaijan";
  • The Bank signed a loan agreement with the ICD (Islamic Corporation for the financing of the private sector) in the amount of 3.5 million U.S. dollars for a period of 5 years for the financing of small and medium enterprises;
  • The Bank has signed an agreement with Societte-Generale Bank to allocate $ 1 million;
  • The Bank became a member of AMCHAM (American Chamber of Commerce in Azerbaijan);

 

2011

  • The Bank started project on "Risk Management" together with International Finance Corporation (IFC);
  • The Bank signed a TA agreement with IFC on "SME Banking";
  • The Bank successfully completed "Corporate Governance Project" with IFC;
  • The Bank started "Azerbaijan Trade and Competiteveness Project" with USAID;
  • The Bank signed a loan agreement with IFC in amount of $7 mln with tenor of 5 years to finance SME clients;
  • The Bank signed a new loan agreement with ICD (Islamic Corporation for the Development of Private Sector) in amount of $3 with tenor of 6 years in order to finance SMEs;
  • The Bank signed a trade financing agreement with Black Sea Trade and Development Bank in amount of $4 mln with tenor of 1 year;
  • The Bank signed funding agreement with US based MicroVest in amount of $2.45;
  • The Bank signed a loan agreement with a German Bank Bank im Bistum Essen in amount of $1.5 mln with tenor of 3 years for microfinancing;
  • The Bank joined "Blizko" express money transfer system ;

 

2010

  • The Bank received first technical assistance on MIS, according to the five-year training and consulting agreement with US Financial Services Volunteer Corps (FSVC)within the"Technical Support" project;
  • The Bank chosen as an authorized bank for "Risk Management" project of the International Finance Corporation (IFC);
  • The Bank continued its activities under "Corporate Governance" Project of the IFC;
  • The Bank received a line of credit amounting to 1,3 million USD from the International Islamic Trade  Finance Corporation (ITFC) for trade financing;
  • The Bank joined "Allure" and "Zolotaya Korona" express money transfer systems;
  • The Bank opened correspondent accounts with SAXO Bank, Denmark and Asya BankAsiya, Turkey;

 

2009

  • TuranBank becomes a member of German Azerbaijan Business Association;
  • New Credit Agreement with World Business Capital amounted $7.5 mln for SME financing with tenor of 10 years;
  • Technical Assistance project with US based Financial Services Volunteer Corps (FSVC);
  • TuranBank joins 2nd Azerbaijan Corporate Governance Project of IFC;
  • The Bank obtained membership to Eurasian Agricultural Credit Association (EURACA);
  • New correspondent relations with Sheker Bank, Ish Bankasi Turkey and Commerzbank AG;

 

2008

  • The Bank was accepted to the "SME financing" project which was approved between Islamic Corporation for the Development of the Private Sector (Islamic Development Bank affiliate) and Azerbaijani Government;
  • The Bank added PrivatBank Ukraine to the list of corresponding banks;
  • The Bank finalized joining express money transfer system of "Privat Money;
  • The Bank opened a correspondent account at Deutsche Bank New York and Deutsche Bank Franfurt;
  • The Bank has been chosen for "Program for the Development of North-East Regions" project, which was signed between International Fund on Agricultural Development (IFAD and World Bank) and Azerbaijani Government;
  • The Bank has been mandated for "Development and Lending to Agriculture sphere" project, which was signed between International Development Association (World Bank affiliate) and Azerbaijan Government;

2007

  • The Bank attracted additional recourses by IFAD (North-East project), IDA (World Bank affiliate) and ICD (Islamic Development Bank affiliate);
  • The Bank joint express money transfer systems - Migom and Express Money;
  • The Bank was chosen as an agent bank on the second project of "Development and Lending to Agriculture sphere", which was signed between International Development Association and Azerbaijan Government;

2006

  • The Bank was chosen a member as an agent bank to the State Mortgage Fund;
  • The Bank became as an associated member of MasterCard International payment system;
  • The Bank was chosen the member to the Caspian Integration Business Club (CIBC);
  • The Bank became a member of MasterCard international payment system;
  • The Bank joint Bistraya pochta, Kontakt international express money transfer systems;


2004

  • The Bank was accepted as the first and the only bank of the tender on “Program for the Development of Mountain and High Upland Territories” which was signed between International Fund on Agricultural Development (IFAD and the World Bank) and Azerbaijan Government;


2002

  • The Bank joined Western Union;
  • The Bank joined XÖHKS payment system;


2001

  • The Bank became a full member of S.W.I.F.T. international payment system;
  • The Bank became a member of AZIPS.


1998

  • The Bank was chosen as an intermediary Bank in granting long-term and low percent credits given by TACIS;
  • The Bank became a shareholder of “Azer-Turk Bank” Joint-Stock Commercial Bank and Azimpex International - Germany, Slovakia and Azerbaijan Joint Enterprise;
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