Azerbaijani Investment Company Launches Talks on Foreign Debts

Business Materials 5 October 2007 14:07 (UTC +04:00)

Azerbaijan, Baku / corr Trend I.Khalilova / The Azerbaijan Investment Company (AIC) has launched evaluation of its portfolio to define the need for attracting foreign loans for its further projects. Anar Akhundov, the Executive Director of the AIC said that at the end of October the company's portfolio will comprise $25-30mln, which will be allocated for planned projects, but will be spent for business plans as needed.

As a result of adoption of an investment resolution on some big projects (construction of petrochemical complex, ship manufacturing plant, oil terminal), the rest funds of the statutory capital might be even insufficient. In this regard, AIC is considering the opportunities for attracting additional funds.

An auditor is selected among four internationally known audit companies, which will carry out evaluation of AIC'a activities in 2007. At the same time work is carried out with the International Finance Corporation on the application of corporate governance standards art the company.

"Firstly we want to show that the company's activities are transparent this will attract funds not only from the public budget but the State Oil Fund too," Akhundov said.

Meanwhile, the company is conducting talks, because there are several projects, for instance with Lafarge, on the construction of a cement plant and a petrochemical complex. Their financing might cost even higher than the statutory capital of the AIC. "Therefore, we should be prepared for it and talks are held with a wide circle of investor, including the IFC, and big private investing companies," head of the company stressed.

The initial amount of statuary capital of the company was formed through the SOFAR's funds in the amount of AZN 90mln.