Azerbaijani biggest bank ups capital by over third
Azerbaijan, Baku, April 4 / Trend I. Khalilova /
As of March 1, 2012, the International Bank of Azerbaijan's total capital (IBA) was 676.455 560 manats, or 31.9 per cent more compared to early 2012, the press-service of the bank told Trend on Wednesday.
As of January 1, 2012, the aggregate capital amounted to 512.737.790 manat and IBA authorised capital hit 240 million manat.
The shareholders decided to increase the bank's capital by 100 million manat, IBA first deputy chairman Emil Mustafayev told Trend on Wednesday. "At present the registration of shares in the State Securities Committee is under development," Mustafayev said. "The Finance Ministry paid the state's share into the bank."
According to the legislation, the shares may be placed during the year.
"Other shareholders will be able to make investments in the capital after getting official permission," he added.
The state share in the IBA charter capital is 50.2 per cent. The existing proportions are not expected to exceed despite the fact that it is planned to invest 50 million manat in capital to pay the share of the state and private shareholders.
"The shareholders' structure in the IBA will remain the same," Mustafayev said.
A subordinated loan worth 150 million manat for five years has been received from the Central Bank of Azerbaijan within the bank's capitalisation. For regulatory purposes, this tool is classified as Tier I capital.
The International Bank of Azerbaijan was established in 1992 as the successor of the Azerbaijan branch of Vnesheconombank. IBA holds a dominant position in the country's banking sector.
The official exchange rate is 0.7861 AZN/USD on April 4.