FrontClear organized and structured a storage-rolling-rolling transaction in AZN/USD with UNIBANK Commercial Bank OJSC. This transaction will allow UNIBANK to effectively convert its obligations in US dollars into manature, which will make it possible to provide their customers with financing in national currency. The NDCCS transaction is documented in accordance with the ISDA General Agreement.
The deal helped to additionally clarify some legal issues related to liquidation netting in Azerbaijan, which were softened by the effective organization and structuring of the transaction by FrontClear.
“We are glad to make another deal with ISDA derivatives in Azerbaijan and contribute to the further development of Azerbaijani cash markets. The deal expands the capabilities of players in world markets to obtain access to the Azerbaijani market and reduces the legal risks of this kind of deals in the country. Our participation continues to promote The best practices, such as margin in Azerbaijan. ” – Andrey Shinkevich, senior vice president of FrontClear
The Chairman of the Board of UNIBANK BCB Faig Huseynov emphasized that partnership with such authoritative organizations as FrontClear and TCX will create new opportunities for bank customers: “We are very glad that the NDCCS transaction will open up new opportunities to finance the local business, which is one of the Important goals in Unibank. This agreement will provide more opportunities for providing our corporate customers with cheap and low -risk financial resources. Thus, Unibank will be able to strengthen support for the development of the real sector of the economy. “
“We are satisfied with the partnership with FrontClear, which allowed the TCX to offer Unibank a way to exchange its obligations in US dollars for manat, which allowed Unibank to satisfy its customers to finance in the national currency. TCX is also the beneficiary of this partnership, since FrontClear covered credit and Legal risks. Currently, TCX is opening up opportunities for establishing direct relations with partners with anti -repaired comfort in the future, which serves as a long -term relationship of the Fund. ” – Jerome Piruz, senior vice president of structuring, TCX
FrontClear is a financial institution of development based in Amsterdam. FrontClear is financed by European development financing institutions, including the European Bank of Reconstruction and Development (EBRD), the Dutch Bank for the Development of FMO, Financial Secer Deepening Africa (FSDA), the French Bank for the development of Proparco, The Currency Exchange Fund, the Ministry of Foreign Affairs and the Ministry of Foreign Affairs Development of Great Britain (FCDO) and the Ministry of Cooperation for the development of Germany (BMZ). FrontClear warranties are counter -guaranteed by KFW, a German development bank with AAA rating. The FrontClear development mandate is aimed at creating more stable and inclusive financial markets in developing and border markets by providing financial guarantees to cover the credit risk of a counterparty. FrontClear (www.frontClear.com) also offers technical assistance for the development of financial infrastructure, legal environment, as well as the skills and capabilities of participants in the local market.