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Azerbaijani leasing company plans to diversify financial sources

Business Materials 5 May 2011 18:53 (UTC +04:00)

Azerbaijan, Baku, May 5 / Trend I. Khalilova /

The Azerbaijani Ansar Leasing, which was established by the Islamic Corporation for Development of Private Sector (ICD) and is a member of the Islamic Development Bank, plans to attract various sources from local and foreign investors to diversify its portfolio, General Director Jeyhun Nagiyev told Trend.

Ansar Leasing's portfolio reached about $9 million over 200 deals. It is planned to bring it up to $15 million by late 2011.

"Leasing companies raise funds, mainly in local banks," he said. "As the investors require additional guarantees for this purpose and the costs will be the same as if the funds were raised in local banks with high rates, the latter will have preference."

He said the high interest rates for leasing services in the Azerbaijani market are connected with the lack of cheap funds.

The Azerbaijani Tax Ministry registered Ansar Leasing in accordance with the single window principle on Dec. 12, 2008. The company is the most capitalized in the country. It launched its activity from late June in 2009.

The ICD was founded in 1999 and it is located in Jeddah. The Islamic Corporation for the Development of the Private Sector was established by the IDB.

The ICD's head office is located in Jeddah, Saudi Arabia.

The ICD supports economic development in member countries through promotion of private sector development. The Islamic Corporation for the Development of the Private Sector also advises governments and private organizations to facilitate the creation, expansion and modernization of private enterprises.

THe IDB was founded Oct. 20, 1975. Its head office is located in Jeddah, Saudi Arabia. It has regional offices in Rabat (Morocco), Kuala Lumpur (Malaysia).

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