Azerbaijani bank attracts int'l financial institutions
Azerbaijan, Baku, September 14 / Trend I. Khalilova /
The International Finance Corporation (IFC) plans to work with the European Bank for Reconstruction and Development (EBRD) to acquire a stake in Azerbaijani Rabitabank, the IFC representative in Azerbaijan Aliya Asimova has said.
"We are finishing negotiations with the bank. We are negotiating over conditions and the final details to buy equity interest in Rabitabank," she said.
The IFC Board of Directors has approved the allocation of funds worth $5 million to Rabitabank. Roughly $2 million is provided as an equity investment and $3 million in the form of a credit line.
The credit resources will be spent on crediting of small and medium enterprises. The IFC is considering the purchase of 10-15 percent stake in the bank.
Rabitabank is a commercial bank, functioning in Azerbaijan since 1993. The bank's assets amounted to 103 million manat and capital to 16 million manat in late 2009. The bank ranks 18 in terms of assets among 47 banks operating in the country.
The bank's branch network comprises 21 branches and offices, six of which are located in Baku, and 15 of which are in the regions.
Rabitabank will become the fourth bank in Azerbaijan in which IFC will acquire a stake. More than 23 banks in Azerbaijan operate with foreign capital.
Rabitabank has been cooperating with the IFC and EBRD since 1999. The controlling stake in the bank (86.1 percent) belongs to the chairman of the Supervisory Board, Zakir Nuriyev.
On Sept, 14, the official exchange rate is 0.8037 manat to $1.