IFC, EBRD become shareholders of Azerbaijani Bank

Business Materials 7 October 2010 12:15 (UTC +04:00)

Azerbaijan, Baku, Oct.6 / Trend, N. Ismayilova /

International Finance Corporation (IFC) jointly with the European Bank for Reconstruction and Development (EBRD) has signed an agreement to acquire a share in the Azerbaijani bank Rabitabank, the IFC said.

In the agreement, which was was signed Sept. 30, IFC and EBRD acquired a share package equal to 25 percent +1 share, at 12.5 percent each. The total amount of the deal is four million manat. According to the bank, the process of buying shares has not been physically carried out, and currently work is underway.

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 that has functioned 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 has become the fourth bank in Azerbaijan in which IFC 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.