Azerbaijani leasing company intends to draw long-term financing
Azerbaijan, Baku, September 2 / Trend I. Khalilova /
Azerbaijani Leasing Company 'Texnika Leasing', established by Texnika Bank, has started to develop a new strategy aimed at long-term financing to purchase equipment on lease with a minimal period of five years, the chairman of Texnika Bank's board, Samir Huseynov, said on September 2.
"At present, we are negotiating with foreign banks to draw new financing for the leasing company", Huseynov said.
Negotiations are being held with the U.S. Exim Bank and Germany's Commerz Bank.
"We have already had a credit line for trade financing to the amount of €6 million from the German Bank, and we hope to increase this line," Huseynov said.
At present, we are currently negotiating with a German insurance export agency Hermes. Commerz Bank's funds are planned to be drawn under Hermes's guarantee.
The volume Azerbaijani company's leasing portfolio was 4.5 million manat at present.
The company has already revised its terms within a new strategy. Under the new conditions, Texnika Leasing provides equipment on lease for 19-20 percent per annum for up to three years.
The minimum cost of the equipment must not exceed 30,000 manat, and the initial contribution must be 30-35 percent.
Huseynov said that shareholders' plans also include increasing the authorised capital of the company by mid-2010. Today, its capital is 200,000 manat.
The company provides leasing services for enterprises and entrepreneurs in the following spheres: leasing vehicles (passenger, freight), traffic, construction and other special machinery and equipment, ships and marine equipment, commercial real estate and return-leasing.
Texnika Leasing Company was established in the second half of 2005.
On September 2, the official exchange rate hits 0.804 manat to $1.
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