BAKU, July 25 (Reuters) - Azerbaijan's DemirBank will use a $42 million syndicated loan from the European Bank for Reconstruction and Development to lend to smaller local businesses, the EBRD said on Friday.
The loan will help DemirBank diversify its funding sources and support private sector development by giving companies access to long-term, low-cost financing.
"We invest across many sectors of the country's economy, from micro, small and medium-sized enterprises to large infrastructure projects, and we are pleased to work with Demirbank to support further improvements in the private sector," the EBRD's resident representative Neil McKain said in a statement.
With assets worth 413 million manats ($516 million) as of July 1, 2014, DemirBank is among the top 10 private banks in Azerbaijan. Its shareholders include the EBRD and Netherlands Development Finance Company (FMO).
Another leading Azeri bank, AccessBank, secured a $60 million syndicated loan in April that was arranged by Raiffeisen Bank International AG and joined by 16 other foreign banks. The money raised will be used for lending to micro businesses.
State-owned International Bank of Azerbaijan, the oil-rich country's largest bank, agreed a $160 million dual-currency syndicated loan on commercial terms in April.
$1=0.78 manats Reporting by Nailia Bagirova; Writing by Margarita Antidze; Editing by Catherine Evans