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Azerbaijani non-banking credit organization starts placement of bonds

Economy Materials 1 September 2015 20:42 (UTC +04:00)
The State Securities Committee (SSC) of Azerbaijan has registered the issue prospectus of interest covered bonds of the Aqrarkredit CJSC non-bank credit organization totaling 3 billion manats
Azerbaijani non-banking credit organization starts placement of bonds

Baku, Azerbaijan, Sept. 1

By Anvar Mammadov - Trend:

The State Securities Committee (SSC) of Azerbaijan has registered the issue prospectus of interest covered bonds of the Aqrarkredit CJSC non-bank credit organization totaling 3 billion manats, said the message the committee released on its website.

Three billion of bonds of the non-banking credit organization with a par value of 1 manat each have been issued within the framework of the bonds' emission.

Emission of bonds of Aqrarkredit CJSC is a part of measures to improve the financial condition and the management of International Bank of Azerbaijan JSC, return overdue loans issued by the bank, and regarding the management of distressed assets.

On July 15, 2015, President of Azerbaijan Ilham Aliyev has signed a decree on the measures for rehabilitation related to the preparations for privatizing the state-owned shares of the International Bank of Azerbaijan JSC.

The shortcomings in the management, investment and loan policy of the International Bank of Azerbaijan in recent years, as well as financing of less efficient, risky investment projects worsened the bank's financial state, caused increase in the share of distressed assets and reduced its liquidity, said the decree.

In order to overcome the current situation, restore the bank's financial position and ensure its sustainability, there is a need to transfer the bank's distressed assets to the state-owned Aqrarkredit CJSC non-banking credit organization.

Aqrarkredit CJSC is the largest non-bank credit organization, whose shares belong to the state, and it operates since 2001.

The International Bank of Azerbaijan was established in January 1992.

The bank's main shareholder is the Azerbaijani government, which holds 51.07 percent of shares, while private individuals and legal entities hold the remaining shares.

Edited by CN

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