...

Azerbaijani Bank Attracts International Financial Institute as Shareholder

Business Materials 18 April 2008 13:33 (UTC +04:00)

Azerbaijan, Baku, 18 April / Trend corr. I.Khalilova / Mugan Bank has held negotiations to attract foreign investors as shareholders and to pass 20% or 30% of shares, Shaig Alakparov, Chairman of the Bank, stated.

"The negotiations have been held with international financial institutes. We cannot declare the results of the negotiations until the final decision has been taken," Alakparov stated.

Previously, there were reports about the prospects of attracting the European Bank for Reconstruction and Development (EBRD) with whom Azerbaijan has been cooperating since 2006 within the framework of credit lines.

Initially the European Bank will be involved in crediting and will then consider the possibility of becoming a shareholder. Mugan Bank appealed to the European Bank to receive the third credit. As a result the portfolio of Mugan Bank may be extended from $7mln to $13mln.

Today, the assets of Mugan Bank comprise AZN 90mln. The aggregate capital is AZN 13.75mln and authorized capital - AZN11mln. The adequacy of bank capital comprises 20%. Mugan Bank is planning to increase its capitalization to AZN 2mln or AZN3mln due to acting shareholders. However, foreign shareholder will be attracted at the expense of additional issues of the bank, Alakparov stated.

Mugan Bank is a 100% Azerbaijani bank.

The correspondent can be contacted at: [email protected]

Latest

Latest