The International Finance Corp (IFC) and Azerigasbank JSC plan to conclude a deal on IFCs joining the share-holders of the bank in May, Trend reports auoting Azer Movsumov, the chair of the Board of Azerigasbank.
IFC spread information on acquisition of 17.5% share for $2.3m The Committee of Directors will approve the decision on 30 April.
According to Movsumov, the deal will be concluded on nominal. Therefore, emission of shares will be announced at the decision by the share-holders of the bank on increase of the statutory capital up to 12m AZN. This will change the proportion of shares. At present 94% of the share-holders of Azerigasbank are physical entities.
It is a part of financing for Azerigasbank to be approved by IFC at the Committee of Directors. IFC will approve allocation of a $3m loan line for 5 years within the program on support of small- and medium-seized entrepreneurship and a $1m loan for 18 months for trade
financing.
According to IFC, Azerigasbank holds leading position in the Azerbaijani banking sector and is one of the private banks, organizing of financing of small- and medium-seized entrepreneurship and other banking service spheres.
The bank is a client of IFC from 1998, when it received the first loan line for $400,000 for crediting of small- and medium-seized entrepreneurship. In 2003 IFC increased the loan line up to $1.2m in relation to expansion of the bank and development of small- and medium-seized entrepreneurship. Long-term financing will allow the bank to strengthen its balance sheet. The investments will be supplemented with technical aid for institutional development of the bank, particularly, in corporative management, risk of management and interior audit.
