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CIIC refuses to raise capital

Business Materials 17 August 2010 15:52 (UTC +04:00)

Azerbaijan, Baku, Aug.17 Trend I.Khalilova /

The Caspian International Investment Company (CIIC) does not plan to increase its authorized capital in 2010. The company's current authorized capital is 31 million manat, CIIC Executive Director Togrul Kocharli told Trend. Earlier, the company planned to raise its capital to 55 million manat by late 2009.

"Based on a decision of the CIIC shareholders, the company's capitalization will be conducted in phases, and additional capital will be issued depending on our resources," Kocharli said.

The CCIC is currently implementing three projects worth 13.4 million manat. The company is considering projects in the logistics, greenhouses and several other sectors.

The first project involves constructing a refrigerator storage complex with a capacity of 25,000 tons in the Samukh region. The CIIC and N.A.A Agrotara signed an investment agreement in June. The company's total investment in this project is 5.5 million manat.

The second project involves building 169 villas in the Saray settlement located 18 kilometers outside Baku. The CIIC has allocated roughly 6.4 million manat to the project, Kocharli said. The project also covers the construction of a kindergarten complex, and a sports and an entertainment center. The project will be completed in the first quarter of 2011.

The third project aims to develop the agribusiness and agricultural sector. The project provides funding for the country's only salad producer. A greenhouse meeting modern requirements will be also constructed under the project. The CIIC will issue roughly 1.5 million manat or 68 percent of the total cost to finance the projects.

The CIIC was registered in March 2008 as a closed joint stock company with an initial capital of 2.954 million manat. The company was established by the Azerbaijan Investment Company and the Islamic Cooperation for the Development of the Private Sector.

To date, a list of the company's shareholders expanded. The Kuwait Investment Company Hares Group, an investment company Yemeni Al Ahmar Group, Sudanese MAM Group, Dubai TANMIYAT Group, as well as the Islamic Development Bank are among the company's foreign shareholders. The share of foreign shareholders in the CIIC capital exceeds 23 million manat.

According to the strategy, CIIC investments will be directed towards real economy, except production of alcoholic beverages and pork products, which is contrary to the principles of Shariah, as well as banking and insurance institutions operating in the standard conditions of funding and provision of insurance services.

The official exchange rate is 0.8038 manat to $1 Aug. 17.

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