Azerbaijan, Baku, 26 August / Trend corr. I.Khalilova / On 1 September, the International Bank of Azerbaijan (IBA) will begin to place shares of new emission in the amount of AZN 100mln, the Baku Stock Exchange said on 25 August. Capital is being increased within the framework of capitalization program, which the Azerbaijani National Bank has offered as a result of inspection.
The International Transaction Systems acts as an underwriter to place shares. In accordance with the issue prospectus, within 10 months the IBA shareholders have a privilege to purchase replaceable shares in line with their share parts in the authorized capital. Nominal cost of one share amounts to AZN 0.20.
It is necessary to increase the authorized capital thrice to observe standards of capital adequacy, Jahangir Hajiyev, the president of the IBA said. The National Bank recommended the IBA to increase the authorized capital to AZN 300mln.
"It is too important to support capitalization of the IBA amid increase of the bank's assets," the president of the bank said.
On 1 July, assets of the bank amounted to AZN 3,635.8mln, increasing by 65.9% within a year. The authorized capital of the bank makes up AZN 100mln. On standards of the NBA, requirement of capital adequacy amounts to 12% and on Basel standards 8%. Hajiyev believes that the IBA corresponds to standards of capital adequacy, whilst violates standards of loan issuing to one debtor or other standards due different estimations. Therefore, there is a necessity for additional capitalization.
State share at the IBA amounts to 50.2% and the rest part of the capital is being formed through means of private shareholders.
The exchange rate for US dollar was AZN 0.814 on 25 August.
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