The Deutsche Investitions und Entwicklungsgesellschaft mbH (DEG) has acquired a 8.33% stake in UniBank, a major local bank with a special focus on small and medium enterprise (SME) development.

DEG and UniBank signed a relevant agreement on Wednesday, along with a long-term agreement on allocation of a $3 million loan to finance the SME sector in Azerbaijan.

The signing ceremony held on the occasion of the Germany-Azerbaijan business conference was attended by Economic Development Minister Farhad Aliyev.

UniBank has been a project partner of KfW Bankengruppe, receiving technical and financial assistance from KfW Entwicklungsbank. The European Bank for Reconstruction and Development (EBRD) has been a shareholder of UniBank since 2003.

DEG is one of the largest European financial institutions that has been financing investments of private companies in developing and transition countries for over 40 years.