Azerbaijani Bank to Involve Foreign Shareholders in 2009

Business Materials 26 August 2008 18:42 (UTC +04:00)

Azerbaijan, Baku, 26 August / Trend corr. I.Khalilova / The United Credit Bank (UCB) plans to activate work to involve potential investors in the bank stock in 2009, Vahid Aliyev, the vice-president of the bank, said on 25 August.

This process has been suspended because of summer period, he said.

"The bank's plans include involving the international financial institutions in the bank stock. At present, shares of foreign capital at the UCB comprises 8.24%, which belongs to Ali Marayev, an individual, and the rest to United Business Company (88.79%) and Adil Huseynov - 2.97%.

According to the development strategy of the bank for 2008-2010, primarily it is planned to increase share of foreign investors at the UCB capital to 10%, although it is expected to be reduced to 3% in future. While expanding foreign investors' list, it is planned to maintain shares of acting shareholders in the aggregate capital in the amount of as minimum 60%. Respectively, shares of foreign shareholders will not be less than 3%. It means that involvement of foreign shareholders will target to increase the capital, but not to restructure it.

According to Aliyev, in 2008 the main attention will be focused on increasing the UCB's capital. It is planned to increase shareholding capital to AZN 22.108mln from the current AZN 12.108mln. It is expected that the bank's capital will be raised to AZN 28mln in 2009 and to AZN 35mln in 2010.

In 2008 it is forecasted to increase balance capital to AZN 27.597mln from AZN 13.798mln at the end of 2007 and to AZN 31.014mln in 2009 and AZN 39.517mln in 2010.

The UCB was established on 30 April in 1996.

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