Azerbaijan, Baku, July 22 / Trend /
The Azerbaijani AGBank has received the first tranche, worth $5 million, in the subordinated 8 year loan from the International Finance Corporation (IFC), the bank said.
Under the agreement signed in early May 2009, IFC will issue a $10-million subordinated loan to AGBank to support its investments. These funds will provide loan entrepreneurs with more beneficial conditions than those which currently exist in the market.
This is the second loan agreement which AGBank has signed with foreign investors in 2009. In early April, the bank drew loans from the OPEC Fund for International Development (OFID) to the amount of $9.5 million.
IFC has allocated three loans to AGBank to finance loans to small and medium-sized businesses and leasing operations - in 1998, 2003 and 2006. Moreover, the corporation acquired 17.5 percent of AGBank's stakes for 1.470 million manat in June 2006.
At present AGBank has two foreign shareholders. In May 2008, 10 percent of the bank's stakes were sold to the U.S. Kazimir Investment Caspian Fund for 8.36 million manat with a nominal cost of 1.5 million manat.
As a result of the new shareholder joining, the bank's authorized capital increased to 26.556 million manat with a nominal cost for each share at 10,000 manat.
The bank's key shareholders are Chingiz Asadullayev and Farzulla Yusifov, as well as the IFC and Kazimir Caspian Fund Limited. The bank has 13 branches.
On July 22, the official exchange rate is 0.8042 manat to $1.
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