Baku, Azerbaijan, Jan. 24
By Azad Hasanli - Trend:
The International Bank of Azerbaijan (IBA) has completed the emission of shares worth 600 million manats, the bank said in a message Jan. 24.
After placement of shares, the total number of shares reached nearly 4.6 billion (nominal value of each share is 0.27 manats), and the bank’s authorized capital amounted to 1.24 billion manats, according to the message.
The capital increase is carried out as part of measures aimed at the bank’s rehabilitation, the message said.
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.
On July 15, 2015, President of Azerbaijan Ilham Aliyev signed a decree on the measures for rehabilitation related to the preparations for privatizing the state-owned shares of the International Bank of Azerbaijan OJSC.
In order to restore the bank's financial position, the distressed assets of the bank were transferred to state-owned Aqrarkredit non-bank credit organization. Aqrarkredit CJSC provides the IBA with liquid assets in exchange for distressed assets.
As of today, Aqrarkredit CJSC bought the distressed assets worth about 10 billion manats from the IBA.