PASHA BANK ENG 20

The primary objective of the Bank for 2021 is to create solutions for meeting customer needs while keeping its asset quality, the foundation for its prudent growth strategy. AFF PASHA Bank incorporated Asset Financing Fund in 2020 Bank will increase its efficiency by aligning the mentioned activities with the market conditions and by pursuing new product follow up and development. Financial Institutions and Investor Relations Services Financial Institutions and Investor Relations Unit continued to contribute to the increase in foreign trade and Interbank Treasury transactions mediated by PASHA Bank in 2020. This contribution is realized by the Unit expanding its correspondence network and establishing additional cash and non-cash credit limits in line with the needs of corporate customers and the Treasury Unit. Alongside the transactions, relations are established with correspondent banks in various currencies, thus mediating the exchange transfers of PASHA Bank customers in currencies such as AZN and GEL. The Bank plans to gain further recognition in international banking markets and increase its share in foreign trade transactions of its customers by expanding its encrypted connection network (RMA). Taking the advantage of being an investment bank, PASHA Bank also provided funds from different markets through alternative financial products such as Murabaha and Sukuk in 2020. Financial Institutions and Investor Relations Unit will continue to contribute to the growing structure of the Bank in 2021. Investment Banking and Intermediary Services PASHA Bank incorporated Asset Financing Fund in 2020 with the purpose of mediating in securitization transactions and aiming to develop and support the Private Sector Debt Instruments Market of which the depth has diminished in the recent years in our country. PASHA Bank mediated in the issues of two different companies, one in agriculture and one in automotive sector, that both have quality asset pools but no access to financing with favorable conditions through these type of transactions and successfully finalized the transactions of sourcing from capital markets. The Bank acted as the leading corporation in obtaining sources from capital markets for the agriculture sector considering the current conditions and helped overcompensate an important deficiency. PASHA Bank anticipates that these transactions will increase gaining momentum in our country just like in countries with developed capital markets and the Bank will continue mediating in sourcing corporations with issues of Asset Based Securities. Under the investment banking area, PASHA Bank aims to participate in venture capital funds which invest in technology-focused small companies with potential in our country. This way, the Bank is planning to support technological developments as well as gaining experience and know-how to establish similar types of funds within the Bank in the future. With these Annual Report 2020 PASHA Bank General Information 37