Azerbaijan Investment Company Prepares to Appeal to Government for Additional Capitalization

Azerbaijan Materials 6 May 2008 13:11 (UTC +04:00)

Azerbaijan, Baku, 6 May /corr. Trend I.Khalilova / Azerbaijan Investment Company (AIC) plans to appeal to the Government of Azerbaijan to increase its authorized capital which currently totals AZN 90mln, said the AIC Deputy Executive Director Riad Gasimov. This issue is currently being considered by the AIC Supervisory Board.

"We will adapt depending on the decision of the Government to approve the realization of South Korean KEPKO Company's project to construct the first private electric power station in Azerbaijan because we intend to invest nearly $80mln to this project," Gasimov said. Accordingly the AIC capital may be increased by at least AZN 100mln. At the same time, he considers that the Company may attract funds not due to the State subsidies. Although this issue is at the disposal of the Supervisory Board, the key goal is to establish a company which may attract funds abroad and place its securities.

"The only problem is that as yet the company has a small history, but the issue that we are a State company helps us. It is not a good indicator that we do not have three years' activity. I think that for three years, we will establish such a scheme to attract additional monies," he said.

At present the Investment Company has invested AZN 55.2mln in six projects. The initial authorized capital was formed at the expense of the State Oil Fund of Azerbaijan to the amount of AZN 90mln.

The minimum amount of investments by AIC may total AZN 1mln and the maximum limit - 20% of AIC capital. Today this limit totals AZN 18mln, but the figure will change due to the increase of capital.

AIC was established according to the 30 March 2006 Presidential decree.

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