Asian Bank ready to issue first loan to Azerbaijani Texnikabank
Azerbaijan, Baku, June 22 / Trend , I.Khalilova/
The Asian Development Bank (ADB) is prepared to issue the first loan worth $10 million to the Azerbaijani joint stock-commercial Texnikabank to support development of small and medium business, Chairman of the bank's board Samir Huseynov said on June 22. "A loan agreement is expected to be signed in two-three months on the base of the held negotiations with the ADB officials," Huseynov said.
The loan will be issued for 5 years, he said.
Earlier, the Asian Bank expressed its readiness to finance Texnikabank worth $50 million. Directions of use of the loan have been provided in the memorandum of intentions signed between the banks.
This loan has been divided into three packages. The first loan worth $10 million was envisaged to issue the Eurobonds. By emission of the Eurobonds, it was planned to organize bridge financing ( type of venture financing, envisaged for companies transforming from private to public and wanting to register their stakes on the exchange). The loan was issued with this purpose, but Texnikabank did not wait for the loan and succeeded in placing its bonds via the London Stock Exchange in 2008 and paid them off in June 2009.
The second loan worth $5 million was envisaged to purchase the right from Texnikabank to acquire the stakes in a coordinated period of time, but this decision should be made at the Board of Directors of the bank. Therefore, it demands a longer period. In this regard, Huseynov said they agreed to receive loans to support small- and medium-sized entrepreneurship. Moreover, purchase of stakes depends on their prices in this period, but if necessary, the Asian bank can limit loans.
The third package comprised B-loan worth $25 million which aims to develop small and medium entrepreneurship. But the ADB allocates $10 million from this package.
As of May 31, 2009, assets of Texnikabank reached 447.6 million manat. As of five months of 2009, bank's assets made up 1.93 percent.
Bank's credit portfolio hit 344.5 million manat. This represents 5 percent increase compared to the previous year. As of May 31, 2009, the volume of consumer credits by individuals hit 60.7 million manat.
Bank's deposit portfolio increased by 3.5 percent in May and reached 140.9 million manat as of May 31, 2009.
Over five months of the year, bank's aggregated capital increased by 15.3 percent and hit 59.5 percent in late May. Over last 5 months, profitability of the capital was 15.92 percent
The growth of incomes hit 8.5 million manat by the end of the mentioned period.
At present majority shareholder of Texnikabank (75 percent) is World Wines company. Some 15 percent of stakes belong to Chairman of the bank's Supervisory Council Etibar Aliyev and 10 stakes - Kazimir Investment Caspian Fund.
On June 22, the official exchange rate is 0.804 manat to $1.