Georgian Bank to Sign Shareholder Contract with Azerbaijani SOA Credit

Business Materials 12 February 2008 19:35 (UTC +04:00)

Azerbaijan, Baku, 12 February / Trend corr. I.Khalilova / The signing of an agreement on the purchase of 75% share in SOA Credit (earlier called Shore Overseas Azerbaijan) non-banking credit organization by the Georgian TBC Bank will take place on 14 February, a source stated in the organization. The Georgian bank has paid $7.5mln for stocks.

The shareholder and member of the Board of TBC Bank, Badri Japaridze, Director General of TBC Bank, Vakhtang Butsrikidze, President of Shorebank International, Lori Spengler, will arrive in Baku to attend the event.

TBC Bank intends to transform SOA Credit into a strong financial institution which will offer various financial services to clients in Azerbaijan, including loans for development of small and medium sized enterprises, and mortgage credits. SOA Credit considers that the contract will make possible it to receive additional funds from various sources.

"Starting TBC activity in Azerbaijan is the natural result of economic integration of the two countries," Badri Japaridze said. "The main fact is that the partner of the Georgian bank is Shorebank financial institution, whose experience guarantees the future success of our cooperation."

As a result the authorized capital of SOA Credit increased to $10mln. The authorized capital of the credit organization is $2.5mln. The authorized capital of the organization formed by grants from the United States Agency on International Development.

At present, the 100% founder of SOA Credit is the international consultative firm Shorebank International.

SOA Credit's credit portfolio formed on the level of $10.5mln and TBC Bank - more than $1bln.

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