Azerbaijan, Baku, May 7/ Trend , I. Khalilova/
The European Bank of Reconstruction and Development (EBRD) is considering issuing $83 million in finance for Azerbaijani UniBank in the form of convertible bonds, the EBRD said.
The European Bank is considering issuing funds together with DEG - Deutsche Investitions-und Entwicklungsgesellschaft mbH financial corporation, Netherlands Development Finance Company (FMO) and Austrian Development Bank (OeEB).
The finance will enable Azerbaijan's large commercial bank to consolidate capital base and maintain solvency in real sector.
The project costs 37 million dollars, which is formed from the principal debt worth $18.5 million (the remaining $32.5 million will be financed by DEG, FMO and OeEB); convertible bond worth $17.5 million (the remaining $7.5 million will be financed by DEG), as well as investments in equity (stock investment) bank of $1.1 million.
The EBRD and DEG hold 15.2 and 8.3 percent of UniBank shares respectively. In 2008, they gained a chance to withdraw from the shareholders of Azerbaijani bank.
The decision on investments of foreign shareholders to UniBank was adopted in late 2008 as bank's authorized capital stock hit 30 million manat.
"The authorized capital will be increased in 2009 by one or two emission of shares. The shares will be distributed among bank's shareholders," UniBank director Faig Huseynov said.
He said increase in the authorized capital expands financial opportunities of Unibank. Growth of capital increases the loan portfolio as a whole as well as the maximum amount of credit to one borrower. In addition, the capital increase is an extra stimulus for the growth of assets and the total volume of attracted credit resources, Huseynov said.
In the first quarter of the year, UniBank assets amounted to 374.18 million manat, which is 10.4 percent less compared to same period of the last year. Deposit portfolio of the bank fell by 29 per cent to 89.35 million manat and credit portfolio - by 7.3 percent to 286.68 million manat. The aggregate capital of UniBank increased by 29.5 percent and reached 68.9 million manat with the authorized capital stock remaining at 15 million manat.
Bank's total income fell by 12.3 percent and amounted to 28.83 million manat while expenses increased by 8.9 percent to 26.37 million manat. As a result, profit of the bank for the year decreased by 33 percent, reaching 2.46 million manat and net profit fell by 32.6 per cent to 1.92 million manats.
UniBank has founded also by legal entities (with a stake of 0.9 percent) and individuals (75.62 percent). The bank has operated since 1992.
On May 7, the official exchange rate is 0. 8036 manat to $1.
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