SEF Azerdemiryolbank Summary Of Project Information (SPI)       Project Name    Azerbaijan - Small Enterprise Fund (SEF) - Baku Banks Credit Line            Region    Europe        Sector       Project No008400   Projected Board DateDecember 20, 1997   Company NameThe following banks have been approved to participate:  Azerdemiryolbank, Azerigazbank, Arkobank, Rabitabank   Technical Partner and/or Major Shareholders    	Azerdemiryolbank, established in 1989 by enterprises of the Azeribaijan railways, is a widely-held joint-stock commercial bank;  Azerigazbank was established in 1992 by enterprises of the Azerigaz Concern;  Arkobank was established in 1992 by the Real Group, a private sector group active in the construction industry; Rabitabank was established in 1993 by companies active in the communications sector.      Project Cost Including proposed IFC investment    	IFC will provide the banks up to US$3.4 million in loans, in aggregate, through its SEF facility.    Location of project and Description of site    	The banks are headquartered in Baku, the capital of Azerbaijan.    Description of Company and Purpose of Project    	The project will channel up to US$3.4 million in aggregate of IFC funds, by way of Credit Lines to four banks, to Azeri small and medium scale enterprises (SMEs), with the objective of providing medium-term resources, currently scarce in Azerbaijan, for financing of business expansions and modernizations, working capital and trade finance.  Target sectors are expected to include transportation, construction and construction materials, food processing and light industry.                                                                                            In addition, a donor-funded program of technical assistance and training designed to strengthen the participating banks credit, risk management, and internal controls skills and procedures has been organized.                                                                                                                                             The proposed investment will be IFCs first involving the Azeri financial sector. Through its appraisal and supervision work, IFC will contribute to the institutional development, strengthening of management skills and best banking practices at the participating banks.  The proposed investment will allow the banks to expand their lending bases and become more active in term financing.  The project will make a significant contribution to SME development in Azerbaijan by enhancing the existing limited sources of affordable financing to local businesses.    Environmental Category and Issues    	This is a Financial Intermediary (FI) category project according to IFC''s environmental review procedure.  IFC has reviewed each banks current environmental management capability, and each bank has committed to establishing an upgraded environmental management system that will ensure that investments (sub-loans) are consistent with the following requirements:  (i) projects that have a total project cost of US250,000 or less will comply with sapplicable environmental, health and safety laws and regulations of the Azerbaijan Republic, and will not invest in excluded activities identified on IFCs Microlending Screen; (ii) projects that have a total cost of greater than US$250,000 will comply with app;licable World Bank environmental, health and safety guidelines and policies, as well as the environmental requirements of the Azerbaijan Republic.                                                                                                                                 Each bank has in addition: (i) designated appropriate personnel who will have responsibility for environmental issues;  (ii) committed to attending IFCs environmental management workshops; (iii) committed to prepare a new environmental management strategy and plan; (iv) committed to clearing all category A projects with IFCs Environment Division, and; committed to submitting to IFC an annual environmental performance report.         Date SPI sent to PIC     November 20, 1997      For Additional Information contact:  Corporate Relations Unit -   telephone: (202) 473-7711   facsimile: (202) 974-4384