KHF Approved Initial Investments for Establishment of New Investment Company in Azerbaijan

Business Materials 15 February 2008 17:58 (UTC +04:00)

Azerbaijan, Baku, 15 February / corr. Trend I. Khalilova/ The Supervisory Board of Kuwait Finance House (KFH) has approved the allocation of initial investments worth $15mln- for the establishment of investment company together with the Azerbaijani Investment Company (AIC) Joint Stock Company, Riyad Gasimov, the deputy executive director of AIC said.

According to him, the capital of the new company will total to $20mln for the first two years and the share of AIC totals to $5mln of the mentioned amount. "The Supervisory Board of AIC is expected to consider the allocation of these funds in the next meeting," Gasimov said.

Works on the project is still going on with KFH. The deputy executive director of AIC said that there a lot of promising projects, but the project of the Islamic company (KFH) is of special importance.

"We expect the Islamic companies to have a flex system and that the established company will be able to fund any project up to 100%, with the power to sale a part of it to any one," Gasimov said.

The Islamic organizations are always interested in the projects in agriculture, infrastructure, logistics and transport.

AIC plans to take part in the projects with minority shares, so the main capital will be invested by the foreign investor. The joint fund between AIC and KFH will be established on the basis of the memorandum signed on May 2007. Joint investment projects will be carried out in Azerbaijan, in line with the memorandum.

According to the agreement, AIC plans to obtain 25% and KFH 75%- of the shares of the new organization.

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