Azerbaijan, Baku / corr Trend I.Khalilova / The non-bank credit organization SOA Credit (called as Shore Overseas Azerbaijan till last year) has gained a permission for the National Bank of Azerbaijan for sale of over 50% of share in the bank's stock capital, Ajdar Aliyev, the deputy chairman of the organization, said on 7 December. The deal will be complete by the end of December and he avoided disclosing the details by that period.
Presently Shorebank International (international consulting company), which is part of the American Shorebank group, is the 100% founder of SOA Credit, Aliyev said. The authorized capital of SOA Credit makes up $2.5mln. It was formed at the expense of a grant from the United States Agency for International Development (USAID), which was allocated at the initial activities stage of Shore Overseas Azerbaijan.
It is believed that after a new co-founder joins the organization and additional funds are added to the authorized capital, the correlation between the capital and the credit portfolio of SOA Credit will increase five times. For today the correlation is $2.5mln (authorized capital) to $8.2mln (credit portfolio).
The Deputy chairman of SOA Credit said that the presence of credit organization of the foreign bank will enable to increase mortgage through foreign loans. So far, SOA Credit used to issue mortgage at own funds and its mortgage portfolio exceeds $5mln. At the same time it planned to expand the consumer crediting with the special weight of 2-3% in the total loan portfolio ($10.5mln). Aliyev said that from the next year the activities of SOA Credit will be carried out on the basis of a new business plan, which stipulates the geographic expansion of the organization (SOA Credit opened one more office in Baku), application of new products.
An extension of the investor SOA Credit list will take place independently on plans to convert a non-bank credit organization into a bank. SOA Credit has not yet applied to the National Bank of Azerbaijan in this connection. Preparatory work to transferring to a bank is in the initial stage.