Azerbaijani bank draws loan from OFID
Azerbaijan, Baku, Jul.29 / Trend /
The Azerbaijani AGBank drew from the International Development Fund under the OPEC Fund for International Development (OFID) loan worth $9,5 million, the bank said.
Under the terms of the loan agreement, $5 million will be directed to finance projects in the small and medium business and the rest $4.5 million to provide trade financing. The term of the loan is five years.
The OFID was established in 1976 and is one of the largest international development institutions, which targets strengthening cooperation between OPEC countries and the developing countries through providing financial assistance. Aggregate assistance provided through the Fund exceeded $10.6 billion, including $1.4 billion as grants.
Under the Fund's support, two projects are implemened in Azerbaijan. The Fund issued a lax loan worth $14 million to build the Valvalachay-Takhtakorpu channel and reconstruct of the Ujar-Yevlakh road.
Over the past 12 years AGBank has cooperated with international financial institutions, including the European Bank for Reconstruction and Development (EBRD), the International Finance Corporation (IFC) and Asian Development Bank.
The bank drew loan worth $9.5 million from OFID in early April.
At present, AGBank has two foreign shareholders. Some 10 percent shares of the bank were sold to the American company Kazimir Investment Caspian Fund for 8.36 million manat at their nominal value of 1.5 million manat in May 2008.
Due to the new shareholder, the bank's authorized capital increased to 26.556 million manat, with a nominal value of each share at 10,000 manat.
Chingiz Asadullayev and Farzulla Yusifov, as well as the IFC and Kazimir Caspian Fund Limited are the main shareholders of the bank. The bank has 13 branches.
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