Azerbaijan, Baku / corr Trend I.Khalilova / The Asian Development Bank (ADB) expressed its readiness to finance the Azerbaijani Tekhnikabank in the amount of $50mln as compared to $25-30 designed earlier, the ADB office in Azerbaijan said on 1 November. The directions of using the loan have been defined in a memorandum on intentions signed between the two banks in October.
This credit line was divided into three packages. The first for $10mln intended for issue of Eurobonds. According to Samir Huseynov, the chairman of management board of Tekhnikabank, before the issue of Eurobonds Bridge Financing (a type of venture financing allocated for companies formed from private to public one and desiring to register their shares at exchanges) will be organized. For this aims the loan will be allocated for this respect.
The second loan for $5mln is intended for purchasing Tekhnikabank's rights on acquisition of shares though the agreed of period. It will occur in case of good prices for shares on that period, but if it raises concerns the ADB can get restricted with credit line
Third package includes B-loan in the amount of $25mln, which is allocated for assistance to small and medium- scale business.
In January 2008 the ADB will dispatch to Azerbaijan its mission for assessment of the bank for further development of a credit agreement under the project with Tekhnikabank. The draft document project will be approved at a meeting of the Council of Directors of ADB by the end of July 2008.